The Truth About Network Marketing
This is a copy from my personal blog. I hope you like it!
If you are reading this blog you are here for one of two reasons. You are interested in starting your own home business or you already have a home business and it's not working out the way you had hoped.
I realize by making this information public I'm going to make a lot of network marketing companies angry at me but I am doing this because I am tired of seeing people having their hopes and dreams crushed by misleading ad's and a few of the companies that are out to cheat you out of your money.
This post is a part of two eBooks I am in the process of writing this is why you will see the reference through out to "This Book" As soon as these books are completed I will post them as a free downloads!
First let me explain to all of you that haven't started a home business yet why about 97% of people who start a home business fail and end up calling the network marketing business a scam or a pyramid. First of all I want you to know that this is a wonderful industry where you can make more money than you can ever make working for someone else! But if you start a home business without knowing what to do your chance of succeeding is almost zero. I'm sure all of you have seen the ad's and emails where a work at home mom makes $34,000 in one month. Think about that for a minute. I mean really if you could do that when you first start a home business don't you think everyone would have a home business? Let me make something clear here. I am not saying that this can't happen, it absolutely can! But! What they are not telling you is that work at home mom has been in the business for several years and has built her business to the point to where she is receiving commission and royalties from her downline on top of the product she is selling herself. Ok, What is a downline? Your downline are the people you recruit into the business and the people they recruit. Your upline is the person that recruited you and the people that recruited them. With that said let me explain how you make money in the home business. There two basic ways you earn money. This is why you hear the home business called a MLM business. ( Multi Level Marketing ) In today's world almost all of these businesses are web-based. Meaning everything is done on the internet. Hence the name Network Marketing. Your two ways of making money are. 1) Recruiting and 2) Retail. Most of these companies have a product you are required to sell. Wait!!! Don't let that scare you or discourage you. Before you stop reading and and delete this book let me explain. You Do Not!! have to get your friends and family to buy your product. But of course if they want to buy from you, Great! You Do Not!! have to go out and knock on your neighbors doors or get out the phone book and call people at random. In fact if you do that you will be just wasting your time and irritating your neighbors or the people you are calling. If you only remember one thing from this book remember this! People Hate To Be Sold To!! Think about it. I'm sure that everyone reading this book has had someone at one time or another try to sell you something you don't want. How did that make you feel? You hated it right? In most cases you didn't want to be rude but you wanted to get away from them as soon as you could. If you saw them coming again you did your best to hide from them, right? So, How and where do you find the people that want your product? In this business you will hear terms like your "warm market" and your "cold market". What do these terms mean? Your warm market is the people you know. Your friends, family and neighbors or people referred to you by someone you know. Your cold market is the people you have to find or attract to you. Notice! I did not say sell to!! I said attract to you. So how do you find these people and attract them to you? Although there are 100's of ways but the simple answer is the internet. Every minute of every day there are billions of people on the internet. Of course not all of these people will want what you have to sell but there are millions that will! There are 100's of free internet sites that will allow you to post free ad's. Craigslist for example is just one of many websites where you can post free ad's. YouTube is another of many websites where you can make your own videos and post them for free. The most popular today is the social media. Such as, Facebook, MySpace, Twitter and YouTube just to name a few. All of these social media websites are absolutely free! If you want to really get serious about advertising you can create ad's and for a fee you can place them on search engines like Google, Yahoo, MSN and YouTube. Facebook, MySpace and Twitter will also let you place a ad for a fee.
Recruiting works by the same principle as retailing as far as attracting people to you. The difference is that you are not trying to get them to buy your product you are recruiting them as distributors into the company that you are representing. This is called building your downline. Believe it or not this is where you get the Big paychecks. You see every time someone on your downline sells some of the product you make a commission. For example, say you have 10 people in your downline and they each sell $100 of product a month and you are earning 20% commission that's $200 a month you have earned without lifting a finger. Now imagine if you had 400, 500 or even 1000 or more in you downline! You see! It is possible to make $30,000, $50,000 even $100,000 and more in one month. Of course the compensation plan in every company will vary and this is one of the very important things you need to look at before you join a company. Also once you get ready to retire if you're with a good company you will continue to receive royalties from your downline for the rest of your life. This is also something you need to pay close attention to some companies require you to recruit so many people each month in order to receive royalties and bonuses. Retail is where you make your fast money. Recruiting is where you can make Big money. The two combined is where you can make your fortune! Read on to learn more as I explain to the people that already have a home business why they aren't making the money that they hoped.
Ok, So you have a home business and you are struggling and about ready to quit. Maybe you are thinking you have been cheated or scammed out of your money. About 95% of the people that sign up for a home business are looking for a job. If this is your reason you have failed even before you started. This Is Not A Job!! At least not in the sense that you can do a little of this or that and get a paycheck every Friday. It is a job in the sense that you are starting a business and working that business is your job. Example, say you buy a restaurant. The restaurant is your business, working there makes it your job. I'm sure if you are still working your business you have realized that by now or you would have already quit and joined the "network marketing is a scam" crowd.
Why aren't you making any money? To answer this question you have to look at several things. Two of the most important things are: 1) The company you have joined. Are they a reliable company? Do they have a marketable product, if so are they publicly traded? A marketable product means is it something that people would want to buy. Being publicly traded means it is sold in stores. Think about that! Why would I buy from a internet distributor when I can walk into a Wal-Mart and buy the same thing? Also you need to look very closely at their compensation plan. By law all marketing companies has to show you in writing an average of the money you can make a year depending on the level you are at within the company. 2) This is by far the #1 reason most people quit. Lack Of Proper Training!! Think about this for a minute. Here's a way to look at it. Say for example you have a hamburger stand but no one has ever taught you to cook! How many hamburgers you think you are going to sell? How long do you think you will be in business? The same thing applies here. If you don't know what you are doing or you don't know how to attract people to buy your product or to join your company you will never survive in this business.
This next statement is by far the most important thing you need to learn! No matter what you have been told to be successful in the network marketing business has to do more with You than it has to do with the company or the product. With a few exceptions most of the network marketing companies are good companies with good marketable products. However to be successful you have to learn how to attract people to You before trying to sell them on your company or product. How do you do this? You do it by helping them to be successful. I know what you're thinking. You maybe saying to yourself, how does helping someone else be successful help me to be successful? Example, say you have a successful home business and I come to you with a failing business, I'm on the verge of giving up. You then say to me, don't give up just yet, let me help you. You then show me what I'm doing wrong and show me how to do it the right way. Wouldn't it make sense that I would start looking up to you ? In my eyes you would be to me a teacher, a leader in the industry. Before long I would want to join your team because I trust you and I would know I would make money with you. Make sense? Of course it does! You see, by helping others you are actually helping yourself. You are presenting yourself as someone people can trust, as a leader and teacher. Before long you will be in the position where you can be choosy about letting only the people you know to be serious to join your team.
Think about the person that signed you up in the business. Chances are that person did not know any more that you did. They joined a home business listened to their upline,bought leads and now they are calling you trying (and hoping) to get you to join. They don't care if you are serious or not they just want you to join so they can get some of their money back from buying the lead. These people will never be able to answer your questions or give you the help you need because they don't know either!! Don't ever let someone put you into this situation!
The best advice I can give you is, read everything you can find to read. Talk to the leaders in the industry. You'll be surprised at how willing they will be to talk to you. Here are a couple of ways to look at it. 1) Say you are married and you're having problems in your marriage. You wouldn't go to someone that has never been married for advise. You would want to go to someone that has been happily married for 50 years! 2) If you want to learn how to drive a car. Don't go to someone that is always having accidents or is always getting tickets. They can only tell you what they are doing and they are obviously doing everything wrong! Go to someone that has never had a accident or ticket. Always ask someone that has a successful business to learn about the business.
I hope that I have been able to help answer some of your questions and get you on the right track. If you need more help or have more question please ask. I am here to help and I will be glad to help anyone that needs it. All commits are welcome.