Network marketing, also called multilevel marketing (MLM), is a business model whereby independent entrepreneurs invest in a company and earn a commission on the products they sell. This profession is attractive to many because it is possible to become the bosses of oneself, establish a self-employed schedule and achieve success with your own hands. Network marketing takes a lot of effort, but it can be quite a lucrative career.
Steps
Part 1 of 3: Finding the Right Company
Step 1. Do a business research
Choosing the right company is critical to success. A quick and easy internet search can usually answer many of your questions. Find out to determine which company is best for you. Here are some questions you should ask yourself when reviewing companies:
- How long has this company been in existence? Is it established or is it just starting out?
- How much are the sales? Is it developing or is it in crisis?
- What is the general reputation of the company? Reviews and blogs usually let you know if it's trustworthy or suspicious.
Step 2. Learn about CEOs and other business leaders
Keep in mind the same factors evaluated for business research. Can leadership be trusted and law-abiding? If the owners have been accused of scams or have had legal problems, it would be best to avoid it.
Step 3. Do a research on the products or services sold by the company
Since you will be responsible for presenting and selling the product or service, make sure it has a good reputation. Some companies offer questionable or dangerous products, so you risk having legal problems if you are part of them. You should keep the following characteristics in mind when evaluating a product or service:
- Is the product or service safe?
- Is the description of the product or service backed by legitimate research?
- Would you use it?
- Is the price fair?
Step 4. Ask the recruiter questions
Once you find a company that you find interesting, you will likely meet a recruiter or other representative. During this process, be skeptical. Remember that the sponsor gets more profits when they sign up, so they may not be as honest as they should to convince you. Don't get distracted by the promises about receipts and actually think about your future job.
- Ask specific and direct questions. If you find the answers too vague, ask for clarification.
- Find out exactly what expectations the company has towards you. How many people should you recruit? Should you participate in training programs?
Step 5. Read the contract carefully
Don't sign anything for now. Take your time to read each individual condition and understand it. You could also consult a lawyer or accountant to secure a fair deal and make sure the business is legitimate.
Step 6. Watch for the alarm bells
According to the United States Federal Trade Commission, some businesses that claim to be doing network marketing are actually hiding illegal pyramid schemes. With this method, they trick recruited people into investing in the business, and the victims almost always end up suffering a loss. Here are some factors to consider:
- A business earns more money by selling products to distributors than to customers.
- A business earns more money by recruiting members than by selling products.
- If you smell burning, don't sign the contract.
Step 7. Create a business plan
When you have some potential businesses in mind, draw up a plan for building and expanding your business. Before even officially joining a company, it is useful to determine the plan as soon as possible. This way, when you take the journey with the company, you can do it with greater confidence. When writing your business plan, keep the following in mind:
- What product or service do you intend to sell?
- Who is made up of the market you are referring to?
- How much time will you devote to it? Will it be a part-time commitment or are you planning to take care of it 7 days a week?
- What's your goal? Do you want to get rich or just supplement your income?
- Think long term. Where will you be in 5 years? And in 10?
- What's your marketing strategy? Will you make cold calls? Will you use the internet? Will you knock from door to door?
- You can upgrade or change the plan as needed, but it's helpful to have a guide at the beginning.
Part 2 of 3: Getting started at a business
Step 1. Choose the right mentor
In most MLM models, the person who hired you becomes your mentor. Consequently, it guides you in the first stages of the work. Typically, the more successful you are, the more money the mentor makes, so it's in his best interest to help you. Here are what features it should have:
- He should be available to help you if the need arises.
- You should consider him a person you would like to work with.
- He should be honest with you and tell you if you can improve at something.
Step 2. Study the products or services and get to know them better
Your job is to sell them, so you should dedicate yourself to learning everything there is to know about them. You need to plan how to present them to potential customers, determine how to answer questions or concerns, and uncover relevant research or studies to support the product or service.
Step 3. Attend company meetings and training courses
They will help you make new contacts and gain skills. You will therefore be able to better prepare yourself for building a successful business.
Step 4. Nurture new leads
In network marketing, leads are potential customers. If you want to consistently earn profits, you have to always look for new ones. There are several ways to do this, and you should use multiple strategies to attract the largest possible share of the market:
- Social networks are a cheap and easy way to generate interest around your product or service. Open a page for your business on each major social network and update it regularly.
- Buy advertising space online and in real life. Websites and newspapers can help you make your product or service known.
- Make cold calls. It's a dated, but still popular method of finding leads.
- Personal interactions are also helpful. Always keep business cards handy and be prepared to talk about your business. You never know: you may meet someone interested in your offer.
Step 5. Follow all leads
To convert them into paying customers, you need to follow them and introduce them to your product or service.
- On your site, set up an autoresponder for visitors to be contacted automatically.
- Put all your contacts in an organized document, with easy access to all information.
- When connecting with a lead, always have a presentation available.
- Make more than one attempt to turn a lead into a customer. Just because a person wasn't interested in the past doesn't mean they never will. Just be careful not to overdo it - you could easily get a reputation as a spammer, which is bad for business.
Part 3 of 3: Building the Business
Step 1. Recruit new members
Just like you were hired by a network marketing firm, you need to recruit members for your team in order to be successful. Always keep your ears open and look for new promises that you think will make a useful contribution to the team. You need to surround yourself with pleasant people, with good sales skills, able to work as a team and willing to collaborate with you.
Step 2. Mentor your recruits effectively
If they are successful, you make more money, so you should prepare to train them. This could take a substantial amount of time, even several weeks. However, you need to understand that you are building a team and it is in your best interest to take the time to make sure that the people you hire are competent enough to become autonomous.
Step 3. Offer good commissions to team members
By rewarding recruits properly, you make sure they have a good incentive to sell. This way, profits will grow for both you and them. Plus, it's helpful in enticing them to continue, which is good for you - talented salespeople need to stay on your team for the business to thrive.
Step 4. Consult with professionals to manage business
Remember that you are responsible for everything related to running the business: taxes, laws and so on. It is useful to rely on an accountant and a lawyer to help you orient yourself in the most effective way possible.
Advice
- It's not a get-rich-quick scheme. It's a huge commitment, so you should be willing to give it the time it takes to be successful.
- Seek advice from people who have been successful in network marketing.
- Don't reinvent the wheel. Follow in the footsteps of those who have been there before you.
- It can be helpful to read books about successful business people to find insights and inspiration. Just remember one thing: a strategy that worked for one person won't necessarily help you too. Read these texts for ideas, but take the hints with a grain of salt.
Warnings
- Make sure you don't quit your full-time job right away. You should only quit your current job when you are certain that you can make a living from network marketing revenue.
- Your business must always be legitimate and law-abiding.
