Network marketing, also known as Multi-Level Marketing (MLM), is a business model that allows independent contractors to directly market a company's products and earn commissions for the products they sell successfully. This profession attracts many people because they can be their own boss, set their own hours, and have the opportunity to achieve success with their own business. Network marketing takes a huge commitment, but it can be a very lucrative career.
Step
Part 1 of 3: Finding the Right Company
Step 1. Study various MLM companies
The key to success in network marketing is choosing the right company. If you have questions or things you want to know, you can find the answers by searching the internet for information. Do your research to determine which company suits you best personally. Some of the questions you should look for answers to when looking for an MLM company are:
- How long has the company been in existence? Is it already standing strong or just getting started?
- How was the sale? Is it increasing or decreasing?
- What is the general reputation of the company? Reviews and blogs usually give an idea of whether a company has a good reputation or is suspicious.
Step 2. Find information about the CEO and other leaders in the company
Remember the same questions as when you studied the company. Is the leadership in the company reputable and law abiding? If a company leader has ever been accused of fraud or has had legal problems, you should avoid the company.
Step 3. Study the goods or services the company sells
Since you are responsible for promoting and selling, make sure the product is useful and worth selling. Some MLM companies market dangerous or questionable products, and you may face lawsuits if you take part in them. Consider the following when considering the company's products:
- Are the products safe?
- Are product claims supported by valid research?
- Do I want to use this product?
- Is the price reasonable?
Step 4. Ask the recruiter questions
Once you find a company that interests you, you'll meet a recruiter or similar representative. Practice skepticism throughout the hiring process. Remember that he will make money if you sign up so he may not be so open-minded. Don't be fooled by promises about how much money you'll make, but think carefully about what you should do.
- Ask straightforward and specific questions. If the answer is too vague, ask for clarification.
- Ask what exactly the company expects of you. How much should you sell? How many people should you recruit? Are you required to attend training?
Step 5. Read the contract carefully
Don't register right away. Take the time to read and understand the entire contract. You may need to consult a lawyer or accountant to make sure you get your fair share and that the company is legal.
Step 6. Watch for suspicious signs
According to the US Federal Trade Commission, some businesses that call themselves MLM companies are actually illegal pyramid schemes. Pyramid schemes trick people into buying products from the company and almost always end up harming the recruits. Some things to watch out for are:
- If the company makes more money selling products to distributors than to the public.
- If the company makes more money by recruiting members than by selling products.
- If something doesn't seem right, don't sign the contract.
Step 7. Develop a business plan
When considering several potential companies, make a plan to build and grow the business. Even if you haven't officially joined a company, it's helpful to plan ahead of time. That way, you can start your business one step ahead. Keep the following points in mind when designing a business plan:
- What goods or services will you sell?
- Who is the target market?
- How much time will you devote to the business? Will it be a part time commitment, or are you planning on working seven days a week?
- What is your goal? Do you want to be rich or just make some extra money?
- Think long term. What kind of life do you want the next five years to be? Or, ten years from now?
- What is your marketing strategy? Will you be promoting over the phone? Using the internet? Door to door?
- Plans can be updated or changed as needed, but guidelines can be very helpful when you're just starting out in your business.
Part 2 of 3: Starting a Business
Step 1. Choose the right mentor
In most MLM models, the recruiter will be the mentor. The mentor will guide you through the early stages of the business. Usually, the more successful you are, the more money the mentor earns. So, he is interested in accompanying you. You need a mentor who:
- There if you need help.
- Able and comfortable to work with.
- Honestly say if there is anything you can improve.
Step 2. Learn and get to know the product
You are in charge of selling the product so you should devote time to learning the ins and outs. You must plan how to promote the product to potential customers, how to answer their questions or doubts, and find out relevant research or studies that support the product.
Step 3. Attend company meetings and training
It helps you to make new connections and learn new skills. After attending meetings and training, you will be better prepared to build a business and achieve success.
Step 4. Gather contacts
In network marketing, contacts are potential customers. You have to keep looking for new contacts if you want to always make money. There are different ways to find new contacts, and you should use a variety of strategies to attract the largest market.
- Social media is an easy and inexpensive means to promote products. Create a page for your company on every major social media site and update it regularly on all of those platforms.
- Buy ad space both in the real world and the virtual world. Websites and newspapers can help spread information about your product.
- Calling strangers, although an old way, is still a popular method of finding potential customers.
- Personal interactions can also be explored. Always carry a business card and be prepared to talk about the company at any time. You never know who will be attracted to your offer.
Step 5. Follow up all contacts
To turn a contact into a customer or member, you must follow up and promote the product.
- Create web pages with autoresponders designed to contact people who visit your page.
- Organize your contacts in a neat file that contains all the information about them so that they are easily accessible.
- Set up a promotion every time you call a contact.
- Try more than once to convert a contact into a customer. If people are not interested in the first promotion, it is not necessarily that they will never be. However, do not over-promote. You could end up with a reputation as a spammer, and that could harm your business.
Part 3 of 3: Building a Business
Step 1. Recruit new members
Just as you are recruited to a network marketing company, you must also recruit new people to join your team if you want to be successful. Always look for new leads, who you think will be a valuable addition to the team. Try a recruiting service like MLMRC. In addition, you need to find people who are interesting, capable of selling, and team players who are committed to working with you.
Step 2. Guide members effectively
If the member is successful, you will make money. So you have to be ready to train them well. This requires a significant time commitment, even several weeks. However, understand that you are building a team and you have good reason to take the time to make sure members are competent enough to go their own way.
Step 3. Give the team members hefty commissions
By compensating them accordingly, you ensure they have the motivation to sell. Thus, they will make money for you and for themselves. Commissions also make them last longer, and that's good for you. Keep talented salespeople on the team to keep the business growing and successful.
Step 4. Consult your business with professional experts
Remember, you are responsible for all business related matters, such as taxes, laws, etc. Accountants and lawyers will be very helpful in effective business management.
Tips
- No get-rich-quick scheme. MLM is a big commitment, and you have to be willing to invest the time it takes to be successful.
- Seek advice from people who are already successful in network marketing.
- Don't try new ways. Follow the ways of those who have succeeded before you.
- Reading books about successful entrepreneurs can provide ideas and inspiration. However, remember that what works for one person may not necessarily work for you. Read books for ideas, but consider the suggestions in them carefully.
Warning
- Don't leave your current job right away. You should only leave if you are sure that all living expenses can be met with income from MLM.
- Make sure your business is legal and law abiding.
