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Is Your Understanding Of Network Marketing Outdated? by Mike Bergeron
I knew things in our industry had changed, but I didn't realize just HOW MUCH they had changed until recently.
Now we all know nothing stays the same, and progress is always welcome in Network Marketing, but I don't think many of us are truly aware of the vast differences we've seen technology bring in just the past few years.
Ten years ago--even five years ago--a successful couple or individual working in Networking limited themselves to a single program. Why? Because working direct sales or MLM took a TON of work.
Mike and Rita were about the best Networking team around a few years ago. They held weekly meetings at the public library and held even more meetings at their home.
If you made any contact whatsoever with Mike and Rita, they would keep your phone and fax warm for days until you finally signed up on their program.
Not only that, but a BIG part of Mike and Rita's success was due to their non-stop mailing of sales letters and postcards. Rita spent many a night posting their prospecting ads on Internet sites and newsgroups.
More than once they got kicked off of AOL and other ISP's for being too aggressive when contacting prospects -- a new no-no in the online age.
I supposed all the work Mike and Rita did was worth it, but at what cost? They worked night and day for years. And even then, I don't think they were pulling in more than a few thousand dollars a month.
Now let's fast forward to today.
Mark and Sandra are the talk of the neighborhood.
They live in a big expensive house and drive a luxury car.
Most people can't figure out how Mark and Sandra afford it.
They're seen at home all day and go on lengthy vacations five or six times a year.
That part makes me smile, because I KNOW what Mark and Sandra do.
They're working in direct sales and MLM from home.
Only there is a key difference in what they're doing from what Mike and Rita were doing a few years ago.
Mark and Sandra use completely automated online systems to find huge numbers of leads, then filter through the leads to find only the best. Only then do Mark and Sandra start talking to their leads.
You see, Mark and Sandra don't spend their days prospecting. They let the technology do all that prospecting and cold calling for them.
The only time Mark and Sandra talk on the phone or answer an email is when a very hot prospect calls them to place an order.
And here's the good part: Because the technology takes so much of the work out of direct sales, Mark and Sandra are able to work several very successful networking businesses.
Rather than earning a few thousand dollars a month, they're bringing in TENS OF THOUSANDS.
Plus, with all that automation (and help from their upline organization) Mark and Sandra are able to take off and travel the world just about anytime they like.
Now that's progress!
About The Author: Mike Bergeron has discovered what could well be the most advanced home-based business opportunity ever created. The automation and upline assistance is astounding. He started earning good money within 17 days of joining. You can too! See Mike's program at http://www.247IncomeStreams.com. Reach Mike at bergeron12@msn.com.
Top 4 Reasons Network Marketers Fail by: Dave Sherwin
Network marketing is probably the best business model the average person can use to achieve real success in their life.
But most people fail miserably. Why is that? Well, first of all, it's important to realize that most people fail in any type of business venture. Look at the facts:
-95% of small businesses are out of business within the first five years according to the Small Business Administration
-According to the Social Security Administration, by age 65 only 1% of Americans are wealthy, 4% are financially independent, 5 % are still working 36% are dead, and 54% are flat broke.
So only five percent of people succeed in life. Just five out of a hundred businesses make it, and just five in 100 people earn financial independence in their lifetimes.
So if the problem isn't really the industry as a whole, but simple human nature, are ninety five percent of us doomed to failure and there's nothing we can do about it? Of course not!
As a matter of fact, often times the difference between the successful and the not-so-successful is very small.
So, assuming you have the qualities of success, and you want to succeed in Network Marketing, it's important to know why it is most people fail, and how you can avoid the pitfalls.
So here are the four main causes of failure:
1. Lack of money
This one is a deal breaker for a lot of people. They just don't have the money to market their business.
Often times, they joined the business and didn't understand that it was a business!
But it is, and businesses need to be marketed.
The good news is that you don't need very much money.
And with the emergence of the internet, I'm proud to say that the amount you need is going down while the results are going up.
As a matter of fact, my leads now pay me! Talk about a paradigm shift.
I used to spend hundreds of dollars every month marketing my business, now my marketing budget is funded 100% through my marketing efforts. More on that later.
The first thing you need to realize about Network Marketing is that it's designed to be part-time.
There are people that desperately need to make money, that just flat out shouldn't be in the business yet.
The idea is to have a J-O-B (Just over broke!) that makes you enough money to live on, and spend $50-200 a month on marketing your network marketing business.
Once your business gets going, make sure and invest a portion of your income back into your business.
I invested 20% of my commissions into my business for the first nine months, and when my Network Marketing income exceeded $4,000 a month, I didn't have to spend near that much any more.
But investing 20% was more than enough to get my business up to a full-time income.
2. Lack of Activity
This one will drive you nuts if you are a leader in your organization. You find somebody great, they have all the skills, they are willing to invest in their business, they look good, smell good, sound good, but they don't DO anything!
And you spend your time coaxing, prodding, inviting, chauffering, paying for their convention ticket, but in the end it's all a waste of time.
Remember the statistic: 95% fail in ANYTHING!
Well, this is a major reason why. And you can't do much about this, all you can control is you.
Here's the best advice I can give on this:
1. If you want your team to go into momentum, YOU have to go into momentum.
2. Work with the willing.
Those that would rather watch the season finale of latest reality show, rather than work their business, just aren't going to the top with you.
Don't waste your time. Keep looking!
Remember, "You can run with a thousand, but you can't carry three." -Jim Rohn
3. Lack of People to Talk To
Most new Network Marketers are told to make a list of their friends and family, and talk to them.
Your "Warm Market" is a list of people that already know you, like you, and trust you.
Warm Market leads are great because they are free, the problem is that most people in Network Marketing never graduate past their list of friends and family.
And very few people are ever going to be good at cold market prospecting.
Those that do make it past the "Warm Market" phase start buying leads.
These leads are purchased from a "Lead Broker". Purchased leads are easy to get, there are a million lead brokers out there selling batches of leads, in varying quantities.
But I recommend that as soon as possible you learn to generate your own leads.
Self generated leads are the third type of lead.
My favorite method of generating leads is through a "Funded Proposal". This method is a lot of fun, because it not only generates good quality leads, but it makes you money!
For example, here's how I do it. I found a book on- line that I really like. It cost me $27, and has full re- sale rights.
What that means is that I can sell the book for whatever price I want, and keep all the money. The book I sell is called, "Net MLM Profits".
The reason I like to sell it is because it has so much good content for network marketers, teaching all the latest on-line strategies and skills network marketers need to succeed in their business.
To market my e-book I have a Capture Page and a Sales Page where people can buy the book.
Now, this is where it gets fun.
Who would be interested in a book about succeeding in Network Marketing?
That's right, Network Marketers.
Who responds to my advertisements and goes to my sign up page?
Is the light bulb coming on for you right now? I hope so.
You see, every month I generate HUNDREDS of qualified network marketing leads.
And enough of them buy the book that it pays for my web-site, my advertising, and even makes a profit!
It's the best system I have found for generating leads.
4. Lack of Skills and Knowledge
In Network Marketing the buzzword for developing skills is "Personal Development".
Every decent Network Marketing company that lasts long term has a culture of personal development. What is personal development?
The best explanation I ever heard was this one:
1. Read at least 10 pages a day in a personal development book.
2. Listen for at least 20 minutes a day to a good audio.
3. Attend a live seminar at least quarterly.
These are three habits that anybody can work into their life. It doesn't take that much time to read ten pages, just give up one half hour date with the idiot box.
And listening to 20 minutes of a good audio is easy for most people as well, because we spend that much time or more driving.
And remember, personal development audios are available from the library if you are on a tight budget.
So those are the four main reasons people fail, and how to succeed in spite of them. It has been said that, "a problem defined is halfway solved."
Hopefully just by identifying the four main causes of failure you can tackle your Network Marketing business with more confidence and enjoy the "Rock Star" income Network Marketing promises.
Copyright 2006 Dave Sherwin
About The Author: Dave Sherwin is a full time Network Marketer who has discovered the secrets of growing an organization 100% on-line, and making money whether people join his organization or not. It's all explained at: ==> http://escapethematrix.net
Below are some of the tools I personally use and recommend. These tools have passed my test, which isn't easy. If you would like to recommend a tool you use daily with great results, please send a note to the editor.
M.L.M Training - The 29 Characteristics of an M.L.M Leader by Tim Sales
Having trouble getting your downline to be motivated, productive and follow your guidance and suggestions?
Here's 29 proven actions successful M.L.M leaders do, written by a leader with a downline of 56,000 people.
1. A network marketing leader doesn't wait until he/she gets a large group before becoming a leader.
It can't work that way, because you would never get the large group if you're waiting to be leader first!
Nor does the leader wait until they feel they possess the knowledge to lead - rarely they do.
My observation is that leaders select themselves by taking on responsibility (the total reason something happens or doesn't happen), rather than just the desire to lead.
Want to be a leader?
Go grab enough responsibility that it makes you feel like quitting every day...then don't quit - congratulations, that's LEADERSHIP.
From that basis there are many other attributes you can develop.
2. At events, the leader arrives early and reserves chairs for their entire group on the front row.
Yes, there are normally only two front rows (left and right)...If you're on the 2nd or 3rd row - you're still considered a leader.
I spent five years getting up earlier than anyone else to make sure that my group had the front row.
What I've found is that there are very rarely more than two leaders in any room.
Please understand what I mean by this.
Once a person gets to a certain level of success they will stop doing these simple leadership things because of ego.
They suddenly become "too knowledgeable" to sit and listen to a speaker that has less time in the M.L.M business than them.
If you remain humble and hungry the world is yours. So is the front row, by the way.
3. A true leader realizes that there is a difference between being a leader and being a leader of people. More on this later.
4. Network marketing "works" under many conditions.
But when those relationships between you and your organization become tight and a "esprit de corps" is created, there's nothing like it. I do mean nothing.
5. Appearance is impeccable. Even in jeans.
6. A leader "appears" organized, much like ducks cruising smoothly across the water.
However, no one sees or knows how radical and out of control their feet are peddling.
7. Leaders of people treat their people with respect.
Respect means you have a good opinion of their character or ideas.
Simply put, you are interested in your people - their ideas, their complaints, their fears, their successes - THEM!
8. As a leader you develop or find five "Top Producers."
Devote yourself to them. Find three qualities that you like about each person.
Write those in your day planner.
Review them frequently, thinking of how you can help bolster one of those attributes.
Bolstering an attribute can be many things - from a good verbal acknowledgement, to giving a telephone headset to someone as a gift who is working hard at making calls, to being their friend when they have a personal crisis.
9. New leaders are let down often by those they devote themselves to.
Why? Because you selected the wrong person to devote yourself to.
You only get good at character choosing with experience. Track record is really the only place to look first.
What has the person been doing with their time...and what does the person do with his or her time?
People are what they spend their time doing. Most great leaders begin in a hole and are mad about being there. Of highest concern is whether or not the person has been advancing. If they're not, it might take a lot of work on your part. Perhaps more than you have.
Every person who's ever had the tough decision of choosing between lose two or lose one knows that this is one of the toughest decisions in life. Albeit controversial, do not sink yourself if doing so won’t save your mate.
Cut away when you feel you’re being pulled under. If you help "able" people, they will help more people. If you try to help an unable person they ! may sink you on their way down.
10. The network marketing leader gets the product or service "specialist" in front of their group - whether it's in person, on a conference call or on an audio or video.
Example: Your company carries a nutrition line created by Dr. Whoever. He specializes in human nutrition and created an ingredient that is in your products that is truly unique.
The leader will somehow get that doctor on a conference call with his or her group to raise their belief in the products.
11. A network marketing leader always gives "back" more.
Example: Let's say that there's a foul-up in processing distributor agreements in your downline. You get the distributors on the phone with a customer service rep that handles the situation. You know that that customer service rep really worked hard to help the situation.
Yes, it's their job… BUT, the leader will send that customer service rep a bag of M&M's or flowers or something to say "thank you for going above the call of duty." What do you think that customer service rep will do for your group now? Just about anything.
12. The leader climbs the ladder and finds out who the decision makers are at the company and gets to know them but never bugs them.
This is positioning yourself so that opportunity can see you.
This is different than you seeing opportunity.
Suddenly you find yourself speaking at the convention...hmm, I guess it was just luck. Yeah, right!
13. At the company conventions the leader will introduce the corporate staff to their organization and vise versa. Even the order takers!
Take the time to do this because it creates a sense of belonging for both the corporate staff as well as the distributors. Imagine the difference when a biochemist for a company has met 100 real people with dreams and passions about selling his/her product.
Do you think that creates a stronger passion for the biochemist to create better products? Absolutely. All of this "belonging" and "passion" was created because of your leadership.
14. A leader in network marketing is the switchboard of information and communication. They're not "in the loop." They ARE the loop.
15. A leader can always be reached by fax, email and or phone.
Returned communication will occur in less than 24 hours. If that’s not a possibility the message will indicate that it might be longer.
16. A leader never exposes weakness and fear to their organization.
Some view me as being "inhuman" or robotic on this. What I mean by this is that the leader must always maintain their certainty about the M.L.M business opportunity.
I've never met a person in my life that doesn't have fear and weaknesses. If you've got fears or doubts about your company get over them or get out. Fly to the company today and get your concerns handled. Come back and be a rock for your group. I guarantee they'll follow you.
Conversely, share with them your little uncertainties and they'll be so relieved that you're "human" and…they'll also find another leader to follow.
17. Recognizing that everyone is growing, a leader never invalidates the efforts of anyone in his or her organization.
One person brings six guests to a meeting, another brings two, and the third brings none.
The leader is able to notice that person number three is there - which might have been a major growth step for them. So instead of criticizing them for not bringing a guest - they praise them for being there.
18. The leader is always searching for and praising something about his or her people.
"Little babies love praise, but grown men will die for it."
Men in battle will risk their lives for a ¼" x ½" ribbon they pin onto their shirt above their left chest pocket.
They wear this ribbon for the world to see.
Forgo praise and you've missed out on the most powerful tool in your leadership arsenal.
Praise for things they've yet to do, and you'll create a person who withdraws from the group because you made them a fake.
19. If you share this list with your group - share whose content it is.
If you don't you will also be guilty of the last sentence of item #18.
Seeking praise, respect, fame, etc. for what you didn’t do, makes you feel like a fake.
20. A leader uses and teaches new technologies in their organization - but only if it truly works.
Don't drive your organization down dead ends.
21. Leaders are ethical examples.
If you "sneak" your people past the registration table you've just ruined their perception of you.
They can never trust you and they shouldn't. You've got one shot at doing this right.
22. A leader creates alliances with needed national and international (if applicable) groups to ensure their group has support and representation. If no group exists, build it.
23. Leaders are more concerned about the growth of their people than the growth of their bonus check.
Focus on the growth of your people, your bonus check will take care of itself.
24. A leader never says what they can get others to say.
Example: My company calls and says, "We'd like you to speak at the company convention." I accept graciously, and then ask "Would it be possible for me to include a new leader named _________? They're a good speaker and I would love to share the stage with them."
See, a leader wants his or her people to be leaders.
25. A leader never, ever speaks ill of anyone - even if they deserve it.
26. A leader acknowledges other leaders in the room.
"We are honored to have in the room with us Mrs. 77. She conducts business meetings in the 44 area."
27. A leader doesn't get bent out of shape because they don't get a return phone call from the corporate office - or the upline!
More than once I've sent pizza to a department with special instructions to the delivery person telling them to say. "This pizza has already been paid for by Tim Sales. He asks only that after enjoying the pizza that you call him at 555-3797."
Everyone laughs and guess what? You get a phone call with the right tone in their voice for getting something done. Anyone can complain - they're use to that. A leader finds amusement in creating more effective forms of communication.
28. A leader has a crystal clear vision about their networking marketing company and where they're taking it.
If the company doesn't have something, they don't complain, they figure out how to convince the company to get it.
29. A leader, after reviewing this list will print it out and does at least one item everyday.
There are more, but this should get you started.
About The Author: Tim Sales helps network marketers gain the confidence and skills to be wildly successful. Discover what every network marketer needs to know to become an M.L.M superstar. Sign up for his no-cost training newsletter and listen to free training at http://www.brilliantexchange.com. (c)2006, Brilliant Exchange, Inc.
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