NOTE: Although this article is about network marketing, its principles can be applied to its newest and increasingly common cousin, internet marketing. A majority of internet marketing programs and businesses are network marketing programs in the final analysis.
One common error shared by new internet business owners, or non-internet business owners, is the assumption that they should market their program in a more standard manner. However, if you consider the cost of advertising your new internet cellular phone services against, let's say, Verizon Wireless or some other major wireless service provider, the task of competing with such a giant in a normal advertising arena is daunting at the least and frankly impossible at the worst.
That's where the network marketing thing comes in.
When most people sign up for any network marketing programs, internet based or not, they usually have no idea what they have actually gotten themselves into. Many will join a network marketing program in the expectation of easy money, an idea often provided by the network marketer who brought them into the business.
They commonly try to apply standard marketing techniques, or at least as they understand them, without also understanding the forces which they are operating against as pointed out in the Verizon example shown above.
Even those who simply want to start their own home business just to get out of the rat race, spend more time with the kids, or start a retirment fund, find that the costs in money and time of running a real business, internet business, brick-and-mortar business, face-to-face network business, or lemonade stand goes against all their expectations if they try to do it using standard marketing techniques.
Their dreams of financial freedom often become a financial ball and chain attached firmly to their wallets and their watches.
However, all is not lost if they apply the purest form of network marketing and forget about going head-to-head with the Verizons of the world.
In its purest form, network marketing is simply one person telling another. The classic example is the time you chose to try a certain restaurant because a friend recommended it to you.
I recently had my car repaired at a garage recommended by the home inspector I used when I bought my house. The home inspector seemed to be an honest fellow with ties to the community, so I was happy to take his advice, and I was not disappointed. I could have looked all day in the phone book to find a mechanic who may or may not have been as reliable.
Unfortunately, a network marketer cannot rely on this passive sort of word-of-mouth alone. He or she must become active, hence the "networking" aspect of this sort of business.
No matter what goods or service you choose to represent, there is almost certainly a business entity capable of providing it as well as you...perhaps even better!
Even so, many network marketers make an excellent income because there ARE plenty of people willing to buy from someone they know and trust, even in those cases where the product may be more expensive or delivery takes longer.
Sometimes, these sorts of purchases will be for convenience as well as for friendship's sake.
Take Avon, Mary Kay, and Arbonne, to name a few. Excellent products, but anyone can go to the abundance of drug stores, groceries, and Wal-Marts and purchase cosmetics...perhaps even at a lower price.
They buy from their distributors out of friendship with their distributor, respect for the product, or the benefit of having their order dropped off at their home or office...or a combination of these.
The most important point is the personal friendship with, or respect for, the distributor, but the most important aspect is probably trust. I can purchase synthetic motor oil anywhere, but my friend sells AMSOIL, and it is a reliable, dependable product, so I buy it from him.
So, how do you network market in the purest way?
As pointed out, the big boys probably have advertising and supply channels pretty well locked up. There's not a whole lot that you can do against that, although this does remain a possible way of gaining customers, particularly if you are at a point where you can afford extensive advertising or a widespread sales team...the reason for building a downline if the company uses a multi-level marketing model.
Under normal circumstances..."normal" to me means not a lot of money, a hearty dislike for sales, and being an amateur compared to the professionals...you delay the "marketing" part of the equation and concentrate on the "networking" side.
In a standard network marketing situation, you can do such things as join organizations, offer free information or services, or participate in community activities. These bring attention to YOU, as opposed to your business, but, once you become known to, and respected by, the people you come in contact with, they will be more likely to purchase goods or services than if you were to merely offer to sell them something.
In an internet marketing model, there is not that much difference. Again, going head to head with the major players in your arena might not produce much, particularly as you are not known to your potential customers, and you probably do not have the budget or expertise to overcome this disadvantage.
However, you CAN offer free information or services and gain the respect and trust of potential customers in this way. You can join discussion groups (most commonly, forums), or groups which might have an interest in your product or service. Again, the purpose is not to "sell", but to "network".
In either scenario, if you and I were to meet and I were to immediately tell you that I sell website hosting, for example, or an internet marketing course, your defenses would be immediately raised, and you would be prepared to defend yourself against my efforts and perhaps even sever the budding relationship.
If, however, I can prove to you that I am on your side, am interested in many of the same things as you are, and that we can have a fruitful relationship whether there is an attempt at "selling" or not, a point may eventually be reached where you will reach out to me and ask me about my website hosting services or the internet marketing course.
You know the funny thing about this? In a world where everyone seems to be looking out for themselves, I am forced to be a nice guy! I have to be a contributing member of society and have redeeming social value. I must make friends or fail! The old saying is, "to have a friend, be a friend." How tough is that?
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Retired from the Army, the author has worked as an accountant, purchasing agent, optical lab manager, restaurant manager, instructor and long-haul truck driver. An active internet marketer since 2000, he now makes his living online. Find more of his articles at http://donovanbaldwin.blogspot.com and http://business-info.xtramoney4me.net/
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Network Marketing Training - Are You a Results or Method Person in MLM?
by Doug Firebaugh
Many people today in Network Marketing do not understand why they are struggling. And many folks are. They do what they believe they need to do, but yet their results are not what they want in MLM.
Is that happening to you?
There are many different types of people in Network Marketing, from CEOs of Corporations, to Stay at Home Moms, to those who are just getting their careers started. And within all of these great folks, there is a secret that we discovered years ago while working MLM very hard.
There are many different types of cars out on the road, and many different types of clothes to wear. Many of them sell well, and others not so well.
There are many different kinds of restaurants out in the world, and some make huge money, and others struggle everyday to keep the doors open.
There are many network marketers that are out really working hard, and some making great money, while the largest portion of them do not.
What is the difference between all of these folks, and what they are doing? What makes the ones that are doing well different than the ones who are not? Many folks have given a lot of answers in Network Marketing, and many are great!
But we have been observing over the last 23 years how people function in life, and in success. It is the same with MLM and a Home Based Business. All people want to Succeed in Network Marketing, but few really do.
It does not have to be that way.
If you will look at other similar entreprenurial ventures, it is the same as in Real Estate and Insurance, and Stock Brokerage. All that enter into those wonderful enterprises want to make it work. And most want to make it work huge. But the truth is, most never make it work at all, as they have fallen prey to a Secret that I ran across 15 years ago, and it has made all the difference in the world as far as Success in my life I have been blessed with.
I call it the "The RMR- Results-Method Reality."(tm)
This secret that made such a difference in my life, can make a huge difference in your life. It can change everything about you, and your business, and how you view life. It can change all aspects of your Network Marketing business, and even how you approach it and engage it. It can even change people around you just by being around you.
Ok, what is the "Results- Method Reality?"
Understand this:
There are two types of people in this business and two types only -- method people and results people.
The difference between the two is huge in everything they do.
1) Method people choose the method they are willing to use and accept the results.
2) Results people choose the results they want, and accept whatever method it takes to obtain them.
Method people's favorite song is "I did it My Way!"
Results people's favorite song is "Whatever I Need to do!"
Method folks have a tendency to work Network Marketing on THEIR TERMS, and expect Network Marketing to bow to their ways of doing business.
INFERNO Secret:
MLM demands a certain concept of working, and being a certain mindset, and if you do not work within that concept, and be who you need to be, then Network Marketing can be a very frustrating experience for you.
Results people are focused totally on what results they want, while method people are focused on how they want to do this business, and what is comfortable.
Results people do not focus on comfort, but construction. They want to construct a business no matter what.
And the biggest difference between Results people and Method folks, is HEART.
Results people seem to have the heart to make it happen, while method people seem to have the heart to make it easier.
That alone is a Million Dollar Difference in the approach to this business. Most millionaires in Network Marketing are RESULTS people. Rare are the mlm millionaires that are Method people.
If you are going to be a leader in Network Marketing, may I suggest you become a results person, and use whatever method it takes to achieve your dreams. That is total personal leadership -- the direct result of leading and moving yourself past all the limitations you harbor in your heart, and creating things in your life as never before.
Leaders relentlessly prospect, approach, present, follow up, and sign up new people. And then they teach their distributors to go out and do the same thing, and look for the same results.
You MUST train on the methods of how to do this business, but do not get lost in that. Become a Results person, and accept whatever it takes, however long it takes,and whatever path it takes, to Succeed in Network Marketing.
INFERNO Secret:
If you give MLM and Network Marketing all you got, then it will in return, give you all it has.
And that is called THE SECRET to getting wealthy in MLM and Network Marketing.
Doug Firebaugh is one of the top MLM Network Marketing people a month read his training ezine. He spent the last 7 years traveling the world speaking and training on Success. He lives in Birmingham Michigan, and you can receive a FREE subscription to his training ezine- The MLM Success HEAT- at: http://www.passionfire.com/pf_heat_4.htmlhttp://www.passionfire.com
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.
If you’ve ever dreamed of running your own business from home, whether on a full or part-time basis...and are good with people but have very little business knowledge, then Multilevel Marketing (MLM) may be for you. This is especially true if you have a minimal amount of start-up cash.
MLM companies provide a product or service to the consumer via a network of “independent” distributors, who usually work from their home.
Reputable MLM companies also provide a low start-up cost, all the training you need, advertising in one form or another, and supply you with a product line-up or service to sell. They also allow you to recruit other distributors and make commissions on their total sales.
The United States Federal Trade Commission, however, cautions anyone from joining a MLM company that pays you for each distributor you recruit, as opposed to only paying a commission on the total sales they generate. This is called ‘Pyramiding’ and is illegal.
The U.S. FTC also encourages you to thoroughly research a MLM company before signing on the dotted line, and not to sign anything under pressure, but instead, take time to consider all the details. You can check out their Multilevel Marketing Caution Web Page at: http://www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.htm On this page, they also list seven checks you should do before making your decision whether to join or not.
Research is always an important component of any business venture and considering a distributorship with a MLM company is no exception.
Searching the Internet under “Multilevel Marketing” returns a recipe of results. These range from government agencies, general information web sites, encyclopedia type sites to a host of disgruntled, former MLM distributors. People who are “pro” MLM don’t write web sites on the topic because they’re usually too busy building their network.
THE GOOD SIDE
Here are some of the benefits of finding a reputable MLM company:
- They have an established and very marketable product line or service, and strive to improve or add to the existing line-up. - Recruiting new distributors will be a streamlined process, and the company will not be involved in Pyramiding. - As a company, they will have a solid track record and good work ethics. - No experience will be required. A good MLM company will provide one-on-one training, as well as motivational seminars and a full compliment of training materials. After all, in Multilevel marketing, when one succeeds all succeed. - A reputable MLM company will be “Family” rated, meaning that crude conduct is not tolerated. - They will provide an excellent bonus plan with many incentives for those who excel. - Well-established MLM companies should be able to provide you with resource material to aid you in not only product sales but in recruiting. - They will have minimal start-up fees. - A strong support system. - You will be led by example. - Healthy team competition. - There will be a successful business and marketing plan in place that can be successfully duplicated by others, assuming they apply themselves to the plan and are motivated to succeed. - There exists the possibility of full-time or part-time commitment.
These attributes would definitely belong to an ideal Multilevel Marketing Company, however not all reputable companies excel in all these areas. Some companies will be better in certain areas than others. Do research on the company. Don’t just accept the motivational hype used by most MLM companies in order to recruit.
Some MLM distributors are so highly trained that they have a “come-back” for almost every statement you make or concern you have. This would be considered a ‘high-pressure’ invitation to join. Always take time away to cool off – especially if you’re excited by what you heard. Sit on your decision for a while and do research. If the company is good, they will still be there when you wake up tomorrow; and yes, you will get a follow-up phone call.
THE DOWNSIDE
While the MLM model can be a great tool to achieve what you want in life, it would be remiss not to mention the downside.
- It is easy to get ‘taken’ by a disreputable MLM company. Do your research. - If you plan on developing a network – a “downline” – it will cost you more money than you realize and take you longer than you think – although this is slight compared to the cost and time required to start up a traditional business. You will spend a lot on resource and training materials that you will end up giving away to prospects and to your downline distributors. - You might spend a lot of money on fuel for your vehicle, meals out, hotel rooms or neck surgery from sleeping in your car. - Some companies insist on a minimum monthly order to maintain your distributorship. - Some companies only pay you for recruiting other distributors and not on their total sales volume. Beware, as this is called ‘Pyramiding’ and is illegal in most countries. - While you may initially be led to believe that the products sell themselves and that you can make a lot of money with little effort, beware. Most businesses, whether they are traditional, online, or MLM, take a lot of energy and effort to make them successful. Consider a rocket: 60 – 80% of the fuel is used just to raise it a few inches off the ground. - Be ready for a lot of rejection. Approximately 80%+ of the people you contact will turn you down. - It is easy to get caught up in the ‘dream’ and overspend because, “Winners always find a way.” It is also easy to be pressured into ‘willingly’ spending beyond your means. - It could very easily become your life’s vocation, with everything centered on it. Some distributors even refuse to attend family weddings etc., because it falls on the same date as their MLM seminar. - Also, like most businesses, when you begin you will be spending much more than you make.
The final judgment: Most business entrepreneurs face the question, “How much am I able and willing to lose if it doesn’t work?” That is the question you have to ask yourself before you get into Multilevel Marketing.
And of course, what do you want from life and what are you willing to do to get it?
If you enjoy helping others succeed so that you can succeed, are willing to take the risks associated with being in business for yourself, even on a part-time basis, and are willing to put in long days, then Multilevel Marketing may just be the tool you are looking for to achieve your business and life goals.
Here’s to success!
About the Author: Chet Holcomb of http://www.internetpromotions.biz is a successful marketing expert providing advice for web marketers and webmasters on how to promote your website, or product using marketing tools that work. You may reprint this article if all the information/links are kept intact and unchanged.
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