Network marketers have to face a lot of rejection to build a successful business. They also tend to be successful in life overall as well as in business.
I recently saw a statistic that over 20,000 people in the U.S. are making over a million dollars a year in network marketing. The profit possibilities are really that huge.
Network Marketing works, and it is not as hard to get started as most of us think. What can be vital to your success is to do some research before choosing a company.
Here are a few tips to differentiate an honest network marketing company from a scheme.
1. How can you tell the difference between a pyramid scheme and a legitimate company? It’s simple. A pyramid scheme is when no product is being sold. It’s where people recruit people, who recruit more people, and so on. There is no product. What eventually happens is that no more people join and everyone except those at the top are left with nothing. Understand that you do not receive anything of value when joining a program like this. All you get are empty promises and that is why it’s a scam.
2. Another problem with some companies is that they offer expensive products and training. If a product or service costs more than what you normally would pay, than avoid that company. You do not want to end up pushing overpriced products with empty promises of making money on others. You can tell a good company if their products or services are priced below or at market value. This makes it much easier for those who just want to consume the products and not recruit anyone.
3. Reasonable or no startup costs are very important. A network marketing business should not cost alot to start. It is important to get value out of every dollar that you spend. What may be surprising to most people is how inexpensive it actually can be to start a network marketing business.
TIP: Find a company with products that you are already buying and just switch your purchases, that way your startup cost is free! What a way to start your home business. You can actually make a profit with your first sale because you are not spending anymore money than you were before starting your business.
4. A good company will offer free or inexpensive training because they should be interested in everyone’s success, not just the companies.
5. People in a company should seem honest and have confidence in their business. Contact people from a company you are interested in, talk to them. Do they seem genuine? Are they excited? If they are just trying to sell their company, then find another company.
6. What is most attractive about network marketing is the passive component. A company should provide your efforts with the opportunity to be multiplied as more and more people join your team. I love the concept of getting paid over and over again for work that I did just once.
7. Find a dedicated mentor that will help you build your business. Before joining any company find out who your sponsor will be, talk to them and make sure that they are committed to working with you, and sharing what they have already learned. An active, helpful sponsor can determine your success within any company.
8. Find a company that ships the product directly to the customer. Avoid buying any more product than you can consume.
9. The compensation plan should be easy to understand as well as provide a nice balance between passive income and income made off of actual sales. A good plan should offer more than one way to get paid, such as fast start commissions, bonus pools, as well as residual income.
10. Finding a company that has a high rate of customer retention will save you allot of stress in the future. You should understand that every company will have some retention, but if they provide quality products with quality training then members will stay around.
One major reason for failure in network marketing is because most people are afraid of rejection! If you want to start your own business then you will either have to get on the phone and market your business or pay someone to do it. The only way to avoid it is to continue working for someone else.
Successful entrepreneurs are willing to do the things that most people do not want to do.
Remember this:
1. A percentage of people that you call will answer.
2. A percentage of people that answer will listen.
3. A percentage of people that listen will be interested.
4. A percentage of people that are interested will sign up.
By understanding these percentages and learning what the above ratios are for your business then you will know exactly what you need to do to be successful.
Copyright 2008 Joe Rispol
By: Joe Rispoli
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Tags: 000 People, Business Network, Business Tip, Empty Promises, Good Company, Legitimate Company, Marketing Network, Marketing Tip, Marketing Works, Million Dollars, Network Marketers, Network Marketing Business, Network Marketing Company, Possibilities, Pyramid Scheme, Rejection, Simple Steps, Startup Costs, Statistic, Successful Business
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I never stop to be amazed by the diametrically opposed opinions on the subject of network marketing, both in the circle of my friends and also in my business environment. Some people are extremely passionate with it. Even top authors like Robert Allen, Mark Victor Hansen and Robert Kiyosaki not only they support and promote network marketing, but they also work actively in it. However, in many circles it is better to say you are a leper than to admit, that you are in network marketing.
My aim is to try to bring light on a very misunderstood concept such as web marketing, a method of selling products and services, which has existed for 25 years (or more) and which, in today’s era of global economic crisis acquires a new momentum, giving the opportunity to many people to be independent from the failed economic model of our time.
To help you understand what network marketing is, we must first explain what it is not. First of all, network marketing is not pyramid scheme.
The pyramid scheme is similar to those chain letters, which we all get in our e-mails. People invest their money just based on the promise that other people would pay money to be returned back to them and eventually, somehow, they will become rich. A pyramid is strictly a money game and has nothing to do with the real commerce. Normally, there is no product, just money changing hands. The sole purpose of such systems is to take money from their members and force them to find new suckers (oops sorry, I mean members), with the hope that they will take back their money and even more … which of course will never happen because one day, when no more members are, the whole system will collapse and the people will lose their money … especially those who entered last! Please note, that such systems have been identified by law as illegal.
In contrast to the above, network marketing (also known as multilevel marketing or MLM) is an entirely legitimate method of selling products or services through distributors or «partners».
The companies, which promote sales via network marketing, give you the opportunity, if registered as a member, to sell their products and receive commissions, both from your own sales and from the sales of any associates/distributors you recommend.
Such companies pay you commissions for your sales, for the sales of the associates you recommend (these partners are the first level), but also for the sales associates, who have been recommended by your first level associates your (second level). There are companies which pay fees for more levels (third, fourth or unlimited levels). All associates below you, is called your “downline”.
It is common in network marketing, that all the new associates pay a small fee to join the company, in order to have the right to sell the company’s products. This is the base model of franchising and applies to all enterprises engaged in trade; MLM is no exception. But I assure you, the financial contribution in a more traditional franchise is much higher than the cheap registration cost of any MLM program.
The American businessman Andrew Carnegie, who offered almost his whole fortune to charity, once said: «I prefer to take one percent of the efforts of 100 people than to take 100 percent of my efforts. »
And that is what network marketing allows you to do. Traditional methods of selling are based on a few selected “superstar salesmen”. The network marketing is just the opposite: it is based on many people, who manage a small piece each and all together create a huge selling volume.
That is why I call this method: «The franchise of the people».
But listen to my advice: a network marketing system should only pay commissions for sales of goods or services, not for the recruitment of new associates. Stay away from systems that advertise that they will make you earn € 20.000 a month easily and quickly, because they are pyramids and you will surely lose your money.
The network marketing is not a quick way to get rich. It is a form of entrepreneurial activity and must be treated with the appropriate seriousness. Surely some people may acquire large amounts of money very quickly. Many would say that these people are lucky. But success in network marketing is not based on luck. (Unfortunately, the money will not make wings and fly into your bank account regardless of what they promise to you.)
Luck is the combination of knowledge, hard work and opportunity, all at the same time!
In order to succeed in network marketing, you must follow some very basic but powerful principles. Successful distributors, who join a legitimate network marketing opportunity, work hard to learn everything about the products and the business opportunity.
They then apply this knowledge through a structured process, by working at certain times each week. Each second of their effort serves their long-term operational success. They then support and put in their business more people, teaching them how to sell the products or services of the company and how they in turn will support more people. This concept is presented and supported in the “payment” or “marketing” plan of the company.
You don’t need to have a large starting capital or any specialized knowledge or training. This is a form of business that anyone can start from home at their free time, which can bring significant economic benefits. Most important however is the fact, that it gives to everybody the opportunity to widen their circle of acquaintances, making them feel that they belong to a group, transforming them into social beings … and believe me, this is something that becomes rare in our society!
By: Savvas ThomasTags: Business Environment, Chain Letters, Changing Hands, Economic Model, Franchise, Global Economic Crisis, Invest Money, Leper, Many Circles, Mark Victor Hansen, Mlm, Momentum, Money Game, Multilevel Marketing, Network Marketing, Pyramid Scheme, Robert Allen, Sole Purpose, Suckers, Web Marketing
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You may have already heard of Pro Wealth Solutions, and are wondering if it is as great of a money maker as everyone says it is, or if it is just another online scam.
ProWealthSolutions.com is a fairly new company, but it is taking the Internet by storm. This new network marketing program is officially the fastest growing program online, according to Alexa.
To understand if it is really a scam, first you have to understand how network marketing (also called multi-level marketing or MLM) works. A lot of people tried MLM once or twice and “got burned” so they bad mouth the industry. They call all MLM programs pyramid scams. Actually all businesses and governments are based on a pyramid shape. You really can’t get away from it. True pyramid schemes are illegal because they aren’t based on anything—there is no product or service. And the people at the bottom always lose. A good example are pyramid scheme chain letters.
But network marketing is just another way of distributing goods and services, by eliminating the middle man and doing it person to person, and paying people with residual income for recruiting and training more sales people. Most MLM businesses are based out of the home. Many people feel that network marketing will replace traditional business someday, because it works so well. (Ask any of the big companies that are making the switch over to MLM because they are losing business.)
And it is true that not everyone is cut out to have their own business or work in network marketing. On average, only 20% of the people do 80% of the work it takes to make good money in MLM. Sometimes people just haven’t found the right company and product vehicle they need to do well in the business. Sometimes they just do better with an old fashioned job, working for someone else.
Personally, I believe that network marketing is the best way to succeed in your own business. I teach university level business and marketing classes, and I have over 15 years of small business experience. And I know full well that 95% of the people who start a traditional small business fail and are closed in 5 years. Those don’t sound like great odds to me, especially after you work 12-15 hour days, put in your life savings, and get very little out of it but debt.
I like network marketing because it doesn’t just reward the rich. The costs are much less to get into, and anyone who works hard enough can make it, with the right company and product. I also like the fact that in MLM you are part of a team, all working together to help each other succeed individually.
But you do need to work at it. Network marketing is not a get rich quick scheme. It is a home based business that you need to commit to and work at. And like all sales, the better attitude you have, the better you will do.
Now, back to ProWealthSolutions.com.
I did a lot of research on Pro Wealth Solutions before I joined and determined that it is indeed a legitimate online network marketing business opportunity, and one that is experience tremendous growth.
One of the things I like about about the ProWealthSolutions.com program is their unique and incredible compensation plan that doesn’t even require any recruiting (although you will make much more money, and faster, if you do!) I also like that fact that ProWealthSolutions.com is a fully automated online business that provides you with the website, tools, training, and resources to start your own online business from home. And there is no need to hold meetings or bother your friends and relatives.
With your membership to Pro Wealth Solutions, you also get training for:
* Success in Real Estate investing
* Repairing your Own Credit
* Paying off your Debt
* Saving on Income Tax
And more training is constantly being added.
Pro Wealth Solutions has a goal to help a million people build successful home based businesses with their unique system. And, believe it or not, they actually show you how your personal downline network is building, even before you officially join.
The sooner you visit and become a FREE Pre-enrollee, the sooner they
begin placing people below you — anyone of which could mean immediate income for your family. Literally hundreds of people who join after you, would be making you money, as they build for themselves. It’s HOT.
Then, the more people on your downline who buy product and use the simple system to build their business below you, the more money YOU can make.
ProWealthSolutions.com is not a scam! It is a legal business and it works (and like any business, you need to work at it to be successful.) It is going to give a lot of people the chance to make a lot of money. Will you be one of them?
If you are interested in joining Pro Wealth Solutions, visit the website at http://MakeOnlineMoney.ProWealthResults.com today. A free tour is available as well as a short VIDEO that will better explain the business and compensation plan. I urge you to take a serious look at this opportunity if you are serious about making money with your own online homebased business!
By: Dianne RonnowTags: Bad Mouth, Chain Letters, Home Business Opportunity, Level Business, Marketing Program, Middle Man, Mlm Businesses, Mlm Programs, Money Maker, Multi Level Marketing, Network Marketing, Own Business, Person To Person, Pro Wealth Solutions, Pyramid Scams, Pyramid Scheme, Pyramid Schemes, Pyramid Shape, Residual Income, Traditional Business
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Although many people scoff at network marketing as a pyramid scheme, it is one of the best business models available to entrepreneurs today. The problem is that most people who start out in the business don’t know how to market properly and/or they expect unrealistic results “right away” with little to no effort on their part. Therefore, they quit and go back to their job telling everyone around them “what a scam network marketing is,” just to justify their own failure.
Why Most Network Marketing Prospects Fail
96% of people who enter into network marketing ultimately fail. That’s right, only four percent actually succeed and stick with it.
Why is this? This network marketing virus is caused by business leaders who place ads that have phrases in them like, “It’s easy, anyone can do it,” “make thousands from your own home in three weeks,” “100k in six months, guaranteed,” etc.
Network marketers place these ads because they want their marketing to produce the most calls and leads. Yes these ads do pull a lot of calls, however they are the wrong type of people at the other end of the phone.
People who respond to these ads do not have what it takes to make it as an entrepreneur. They are looking for the next get rich quick scheme to give them monumental success in a very short period of time without really learning the business and applying themselves.
These prospects may seem really eager and determined at first, but that will quickly fade as they realize that network marketing is no joke. Most prospects come in with such high emotions that they get crushed and depressed when things don’t work out for the short term.
To be the best in network marketing you need to be calm and collected no matter what happens with your business. Otherwise you will be an emotional roller coaster as the ups and downs of this business will ride you into insanity.
What the Best Network Marketing Gurus Know
Ever wonder why only such a small percentage of the network marketing population makes over six figures a year? It is because they know a few things others don’t. If you want to become wealthy you need to know what it takes to be the best:
* Clear, specific goals
* Persistence
* An unwavering belief that you will succeed
* Dedication (time and resources)
* Willingness to learn
* Positive Thinking
* Excellent marketing and business strategies
The Best Network Marketing Secret
If you want to learn the best network marketing business building technique you need to first understand why someone would be attracted to join your opportunity. I know it may be hard to believe, (because of the generic training tapes your company gave you about how great their product is) but people do not join your organization for the opportunity or the product.
There are a ton of network marketing opportunities and products that are all great and offer many advantages and benefits, so why bore prospects with the same crap everyone else is. Remember you are going after quality when you are looking for prospects, not quantity. So only market to people who already understand the network marketing model and believe in it.
Put yourself in their shoes. If they already understand the network marketing business model wouldn’t they be looking for the best opportunity that offered them something more than an up-line who wants to make money off of them? This is the secret – you need to offer them an opportunity to join the best team in network marketing (your up-line, your down-line, and you).
Make it clear to them the goals of your team and that you are looking for other distinguished leaders to join and help grow the team. Finally, offer them ways to become the best by offering great educational business resources. This way they can continue to improve on their network marketing skills without having to go out and find the information themselves.
If you follow those steps you should be able to build an efficient and effective network marketing business. Remember to be the best you need to be persistent, learn from failure, and never stop educating yourself on how to improve in the business.
By: Mike DillardTags: Best Network Marketing, Business Leaders, Business Models, Emotional Roller Coaster, Emotions, Entrepreneur, Etc Network, Failure, Insanity, Joke, Marketing Gurus, Network Marketers, Period Of Time, Phrases, Prospects, Pyramid Scheme, Short Period, Six Months, Ups, Ups And Downs
