Wondering what multi level marketing is all about or what account for the huge success stories of these multi level marketing companies? Thinking of starting or investing in a multi level marketing business? You are not alone! What is surprising is how many of these multi level marketing companies turn to spread rapidly in the minimum time frame.
While I try to provide answers to these worries and others in this article, you will be able to gain more inside of multi level marketing strategy which will go a long way to provide the foundation for any successful multi level marketing business.
Bear in mind that multi-level marketing is amazing with a good number of success stories. In other words, anyone can become successful in this business type. And the best part is that others have already blazed the trail to success. Therefore, all you need to do is to look at what they've done and follow suit.
What is Multi-Level Marketing?
The key word here is “multi-level”. Multi level may simply mean many levels, thus multi level marketing (MLM) is a business structure whereby a company recruits distributors to sell the company's products and services directly to the public. These distributors are also encouraged to recruit others to sell the products. The best multi level marketing companies usually encourage existing distributors to recruit new distributors, known as distributor's "downline" by paying the existing distributors a percentage of their recruits' sales. All distributors also make money through direct sales of products to customers. Some of the world's largest companies use MLM, also known as network marketing companies or direct sales, as part of their marketing strategy.
What about the Legitimacy of Multi-Level Marketing?
Before venturing into a multi level marketing, it’s vital to know if the company is legitimate or it’s operating a pyramid scheme (which seems to rely more on recruitment and not on actual sales of products). Legitimate multi level marketing companies primarily based their marketing on sales of products to consumers, whereas scams or the pyramid system based on members who must recruit new members to buy their products. The former and not the latter, is deemed a legitimate multi-level marketer. The Federal Trade Commission (FTC) has been investigating multi-level marketing companies for several decades and has found many that blur the lines between the two.
Multi level marketing or Network marketing is a legitimate business strategy, though controversial and has seen the light of success in many cases. Here are the various steps on how to succeed in multi business marketing business you may follow.
How to Succeed in Multi Level Marketing: Decide Your Goal
Many people venture into business for various reasons. Some direct sellers just want to earn enough money to take a vacation, some want to see their products on almost all counters while others want to build a 6-figure business. Deciding your goal or knowing want to achieve with your business will go a long way to help you design a successful business strategy.
Draw a schedule or plan for multi-level marketing strategy. Your plan should be a full reflection of your goal, and the time you plan to commit to your business. Remember that, your plan or schedule is your only guiding document which is able to guide you along your path to success. Thus, it should be consistent, effective and efficient.
Plan to put in 3 to 10 hours per week to your business, if your goal is to work part-time in multi business marketing, so you can earn extra money.
Plan to put in 20 or more hours per week to your multi business marketing business if you intend to recruit others and build a large direct sales business.
How to Succeed in Multi Level Marketing: Consider the Products
Many multi level marketing companies that market their products through distributors sell quality items at competitive prices. That notwithstanding, some also offer goods that have questionable quality, are overpriced, or are downright unsafe to use.
Make sure to know the product you will be selling. Of course, you shouldn’t engage in selling something you know little to nothing about. What if there are poisonous, drugs or other products that are against the law? Find out if there are similar products on the market, if the product priced competitive enough or if it’s safe.
Almost any product could be sold through multilevel marketing strategy, including beauty, fitness, and health products that aren't available on store shelves. Always try to ask questions and get the right answers before selling or purchasing products advertised as having guaranteed results or "miracle" ingredients.
If you decide to venture into a multi level marketing program and promote the products, you must make sure the marketing product information you use are truthful and has solid evidence to back it up. Before you repeat any claims made by the company, make sure they are verified and found to be competent and reliable with good facts to back them up. This is the standard the Federal Trade Commission (FTC) uses to evaluate advertising claims.
Find out About the Company
The only wrong thing that will in most cases end in failure or dissatisfaction is venturing or investing in a company you know nothing about. Find out and study the company’s track record. Carry out or conduct an internet search with the name of the company. Search in review, scam or complaints. You may also want to look for articles about the company in newspapers, magazines, or online. Your search should be geared at finding out:
- whether the company you want to join has a positive reputation (track record) for customer satisfaction
- how long then it has been in business
- what people say about the company and its product on websites and blogs
- whether the company has ever been sued for deceptive business practices
You should note that a lack of complaints doesn’t guarantee that a company is legitimate.
Evaluate the Multi level marketing strategy
Avoid paying or signing a contract in an “opportunity meeting”. You are going to be investing in real cash and time son don’t rush into your decision. Ask your sponsor for the terms and conditions of the company, which should include:
- the compensation structure
- your potential expenses
- supportive facts or evidence for claims about how much money you can make
- the contact information and name of someone at the company who you can always contact for any answer to your questions
This information should be in writing. Don’t invest in any company where the reward for selling products to the public is less than that for recruiting new distributors.
If you don’t understand anything, ask for more information until it is clear to you. Remember that when you recruit new distributors, you are solely responsible for the claims you make about how much money they can earn. Thus, be realistic, and be honest. If your promises fall through, you (and not the company) could be held liable, whether or not you were simply repeating claims you read in a company brochure or heard from another distributor.
Your sponsor and other distributors should be willing to answer your questions. Remember that your sponsor (including those above your sponsor's level) will make money if you join the program. Thus, don’t be at a rush, and resist any pressure to join. Be aware of fake references paid by the distributor or company to pretend they were successful earning money through the plan.
Find out about refunds policy.
The top or best multi level marketing companies have written refund policy. Make sure this policy includes information about restrictions, penalties, and returning any unused products. Being able to return the products for a reimbursement is a great way to minimizing your risk, but policies also vary on how long it may take and whether you’ll get a full refund. Many companies require distributors to pay training fees and/or but marketing materials, or pay for seminars in order to create your own network of distributors or get product discounts. Find out how much money and time other distributors spent on seminars, training, and buying marketing materials after they joined the company, and whether the company requires distributors to participate in periodic training.
Take advantage of any training that the company provides.
Most multi level marketing companies design training to help new recruits familiarize themselves with essential success principles. Such training programs provide information in product, sales, commission and various levels of operations. Training materials may include manuals, brochures, or recorded video and audio classes.
Also, make sure you take part in seminars or training sessions that the company offers. At these trainings or seminars, you can learn about new products and the latest business success strategies.
As part of your marketing strategy, you should be able to utilize the professionally designed online and offline sales and marketing platforms (software) your company provides. Such online platforms may include email addresses, banners and company-approved websites. Offline materials include brochures, catalogs, business cards and sales flyers.
Attend networking events
Such events are good places to meet people who may be interested in becoming a distributor or interested in buying your products.
One of the best principles on how to succeed in multi-level marketing is to share the products and the business opportunity with other people.
Many networking events allow participants time (short but long enough to give out the most important information) to introduce themselves and their businesses. Thus, you should practice giving a 1- to 2-minute speech about your business.
Your speech should say your name, your company’s name, types of products you sell and the benefits of the products.
Use social media (networking) websites to promote your business
This is a great way to let your contacts and friends know about your business. They may also help you meet your goals by buying your products or becoming distributors.
Hold online business networking events and parties using social media (networking) platforms such as Facebook. Multi level marketing business sellers often find network marketing success in virtual events that allow more people to participate than if they had to attend an event in person.
Showcase your business opportunity and products by organizing events
Such events can be in your home or in the homes of new or potential distributors.
At such type of "party plan" events, make sure you (as a distributor) do all their marketing. During the party, you should demonstrate the products and describe the business opportunity. Turn the party into a fun gathering with games and refreshments.
How to Succeed in Multi Level Marketing: Ask Questions and be absolutely clear
Ask your sponsor and other distributors tough questions, and dig for details. This will prove to be the most vital information you will get that will go a long way to guide you in setting your goals and objectives. Remember that you are on a mission to check out a potential business deal that will require your time and your money, and any mistake at the beginning may only lead to wrong investment.
The responses you get can help you detect whether the business is a pyramid scheme or false claims about the amount of money you may make. Here are some questions to ask before making any decisions for joining and setting goals and objectives:
- What quantity of the products did you sell to distributors?
- What were your annual sales of the product?
- What were your total expenses the previous year, (this include the money you spent on training, seminars, materials and buying products)?
- How much money did you make last year? (Your income and bonuses, less your expenses?)
- What percentages of your sales were made to distributors?
- How many hours per week did you spend last year on the business?
- How many new people, have you recruited?
- For how many years have you been in the business?
- What fraction of your income, commission and bonuses less your expenses, came from sales of products and what percentage came from selling them inventory or other items and recruiting other distributors to get started?
It’s crucial to get a complete idea of how the network marketing business works and not just how much money distributors make. Also, make sure you are aware of how much money and time you’ll be expected to put in the network marketing business, how long it takes before you’ll start making money, and how many recruits are needed to make good money. One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public or if they make more money from recruiting than they do from selling.
How to succeed in network Marketing business: Multi level Marketing Success Tips
Once you begin your business, seek help from the person who recruited you, especially to help you organize your offline and online events.
Understand the Realities of MLMs
Understand the basic of a multi level marketing business and avoid pyramid schemes. Search more about the industry as a whole and multi level marketing companies carefully. While it’s possible to succeed in this industry, the truth is, just a few actually become successful or get rich. This is simple because most people who venture into this business type are not informed or didn’t take time out to do their homework. Any great feat requires knowledge and action.
Develop your goals and objectives
Statistics have shown that very few people who venture in the MLM business have written goals and objectives, yet those who do achieve high levels of success. Determine your goals and objectives before any investment, especially when it involves time and money.
Your goals are the steps that will lead you to your dreams (the big picture). Then, break your goals down into bite-size objectives. Your objectives should be a measure of what you plan or intend to achieve each day.
Join a Company with a good quality product You Love
You won’t be able to sell or share your business if you don’t genuinely have pride in the product or company you are representing. Carry out enough research and partner with a company that has a product that is in high demand and for which you can get excited about. Not just that, but also make sure to look into the company's compensation plan and make sure it is favorable to you before you joined.
Multi level marketing business is a business with a good number of successful individuals you can always dig into their stories and duplicate it. Those who've already been successful will willingly share their secrets to success. All that is required from you is to listen and then do what they tell you (do a copy and paste system). Traditional business strategies generally won’t work effectively in an MLM business milieu. Listen to your upline leaders, if you plan to make it big in this sector. Successful network marketers have been there, done it, and have the track records to prove it thus, be coachable, and duplicate their success.
Be Genuine and Ethical
One of the reasons why network marketing gets a bad rap is that many representatives use sometimes deception to lure in new recruits. This leads many to believe that the multi level marketing companies themselves condone this deceptive behavior, but in truth, they don't.
Legitimate network marketing companies encourage its distributors to be honest in their dealings with potential recruits and customers. If your product is of high quality and you love it, your enthusiasm is enough to promote it. Good business conduct will ensure that your customers and recruits don't feel duped, and as a result, will stick with you. Just make sure you're not over-the-top or making exaggerated or false claims.
Be consistently persistent
Most MLMers give up too early. This is mostly due to unrealistic goals at the onset of their investment. If your goal is very unrealistic, for example, if you plan make $10,000 in the first month. While this goal can be realized in the first year, trying to achieve it in the first month may only frustrate you and make moving on difficult. It actually takes time to build a network marketing business. You'll have to plan to meet or contact a lot of people, endure a great deal of rejection, and give many presentations. However, it's only those who are consistently persistent who will succeed.
If you're duplicating or following a successful system, then time will be the only thing separating you from success. When things are looking dark, keep pushing and pressing on. Make one more call, talk to one more person and follow up one more time. The truth is, if you're with the right MLM Company, you should persist and never give up because at the end, you'll be successful.
Listen and Sell the Solution
Many network marketing companies provide materials or scripts to help you market the product. While these are usually helpful in teaching you about your product and dealing with objections, marketing is all about being a solution to people’s needs. By qualifying your contacts, and then listening to their needs, you will be able to tailor your pitch in such a way that you become the solution to their problem.
How to Succeed in Multi Level Marketing: Point of Caution
Although social media flatforms are a good place to meet people and promote your business, avoid spending all your time advertising your business. You will alienate your contacts and friends if you come across as a pushy salesperson.
Carefully read through the procedures, terms and policies of your agreement with the company. Make sure you understand what types of marketing and advertising you allow to use to promote your business. Most network marketing companies and the law prohibit you from sending unsolicited email to promote your products.
How to Succeed in Multi Level Marketing: Conclusion
While MLM strategy over the years has witnessed a series of success stories, the best multi level marketing companies focus more on sales rather than on recruitment. If you are careful enough to search and talk to others who have succeeded in this sector and follow through their marketing strategy, you can be sure of making it big also but that will also require time. Therefore, try to build trust and credibility once you start your multi level marketing business.