Saturday, September 29, 2012

The Brutally Honest Approach to Network Marketing

Network MarketingNetwork marketing has quickly become one of the fastest growing ways to work at home. Sometimes called Multi Level Marketing or Affiliate Marketing, Network marketing is based around the concept of recruiting. You join a program that utilizes network marketing to sell a product, and you make money by recruiting new sellers who have purchased their products from you and are now selling their own. You may get a cut of their sales and their recruits' sales and so on for many levels. The possibilities are endless, and so is the income potential. So it sounds all gravy right? All you have to do is get your business up and running by joining the program of your choice and recruiting new prospects.
It sounds easy enough, doesn't it? It sure did for me, and I cannot describe how excited I was about finally being able to do something about my job that I hated and the long, miserable days that I spent there. I was so ready and eager to go out there and be successful with my new network marketing business. I had all the resources I needed at my fingertips through my program, and all I had to do was turn the key.
Once I did a little research, I saw that there were lots of other people recruiting and advertising their opportunity. No sweat, it just shows how many people were having success with this concept, and it was time to get in on my slice of the pie! I mean, if people were not successful with it, then why would they be advertising it? I'll admit, it started out a little slow. Well, very slow. I found myself doing everything I could within time and budget restraints to promote my program, but I was generating no results from my efforts. Day after day I would check my email, vigorously hoping to be greeted by an email from my program telling me I had signed up a new recruit. Every day I would have a little less excitement while opening my inbox, and a little more lost hope when I saw no email containing the good news I had anticipated. Weeks turned into months of unsuccessful promoting. I finally gave up, threw in the towel, and turned to face the miserable reality of a job I hated with no escape.
My name is Joe Borowy and this is the story of how I failed with Network Marketing. I'm sure its the same story many of you reading this would write about your experience with Network Marketing. The truth is 95% of Network Marketing Businesses fail. All too often, a story of one's failure looks no different from my own. It can depressing when you think about how much hope and drive you had to be successful, all to see it slowly fade away.
Network MarketingAfter my Network Marketing Business failed, I continued to do research on the concept of Network Marketing and I was determined to figure out how the 5% who do succeed with Network Marketing go about doing it. I had to sift and search through many bogus methods, useless "secrets," and sales pitches that targeted Network Marketing failures like me. Many websites out there try to target people who have failed with Network Marketing, promising new ways to make money from it and new methods to drive success. As you probably know, there are also many websites who target Network Marketing novices, and create false hope and promise. These are what I call "Vegas Airport Slot Businesses." For anyone who has been to Las Vegas, you know that the airport is famous for having hundreds of slot machines for you to play right after you get off the plane. The airport makes shocking amounts of money from these slots. They have horrible odds, but most of the people who play them don't know that. What is their goal? They want your gambling money to be spent as soon as you get off the plane. Most people are dying to play the slots for the whole duration of the plane trip. As soon as they get off the plane, the slots are right there waiting for them. You would be surprised on how much people blow on these things. After they've had enough, the people go about their vacations, have a good time, and most likely lose a good chunk of money. After a few days, they are ready to cut their losses, and get on a plane to head home. They are disappointed because they didn't hit any jackpots. They have a few dollars left, and they recognize the airport slots as their last chance to hit the big one. They sit down with a revitalizing hope of going home on with more then they came with. Soon enough, they have nothing left, and are disappointed once again.
So what do these slots have to do with Network Marketing? They are built on the same principles. The Las Vegas airport slots are designed to crop you up with hope and excitement for the opportunity to gain wealth, and take your last dollars after you lose. The sad reality is most of the network marketing programs you will come across are designed one of these two ways. They either want your first and foremost dollars, or your last, desperate dollars. Remember, the executives and founders of these programs know very well that 95% who enroll will fail. Its just the sad truth.
So...Is there any realistic hope of being successful with network marketing?
I am very glad to say yes, there is. I am not going to try to pitch a sale to you here, but I have found several factors that are essential for any success with network marketing. Some are more obvious than others, and some of the obvious ones are much more important than you might expect.
Here they are, in no particular order:
1. Relationships- This is probably the most important factor of developing a successful Network Marketing Business. When trying to find new people to enroll in your opportunities, you have to prove to them you are trustworthy and that you want them to be successful. The best way to do this is by working to make your network successful, rather than using them to make yourself successful. It not only will make your more money in the long run, but you will enjoy doing it. It will develop a "family" atmosphere of sort between you and your network. It will truly feel like the perfect job, because all of your colleagues are happy, and you all help each other. This is the x-factor of success with networking. Even if you were to do everything else right, your business would slowly fade away if you had no relationship with your enrollees.
2. Communication- This one is very obvious, but often is missing link for many up and coming Network Marketers. Most programs utilize some kind of autoresponse system for its enrollees. Too many Network Marketers label this as their communication with their prospects. To truly develop the relationships you need to be successful in the long run with Network Marketing, first hand communication is a must. Live calls and personal calls can be good, but many people, like myself, don't like phone interaction for Network Marketing. I feel that calling prospects about opportunities, or calling new enrollees to motivate them to push forward with their business could easily put someone in a situation where they are back into a corner and do something they don't really want to do. That's why I prefer email as the main communication source for my network. It allows friendly communication, encouragement, advice, and motivation without putting anyone on the spot. More enrollees does not necessarily mean a better overall network.
3. A Realistic Opportunity- The Internet has become oversaturated with hundreds of network marketing programs, all of which claim to be the best. It is important only to promote programs with realistic opportunity in the long run. Look for a reputation, a good amount of included resources, or even in some cases, a new program in prelaunch that offers you an upgraded membership at no cost. Be careful though, there are thousands of great salesmen on the Internet, and it is very easy to be deceived. I have tested dozens of programs, and yet, only offer several opportunities to my website readers and mailing list. I wouldn't want to waste their time offering them a program that probably would not work for me. If you are looking for a realistic opportunity, browse my website and see if you like any of the opportunities I promote. I try to include something for everyone.
4. Mailing Lists- Not only developing your own, but signing up for others on the Internet that have good resources and tips. By getting people to sign up for your own mailing lists, it allows you to communicate with them and share with them new opportunities, as well as feed the new relationships you are developing. It is very important to sign up for other mailing lists, as they often are the best sources for fresh, new opportunities. Pass these on to your own email list, and your list will do the same for their own lists.
5. A Goal, a Drive, and a Reason Why- Any successful entrepreneur will tell you that in order to be successful, you have to want to be successful and have a reason why you want to obtain success. I'm not just talking about wanting to get rich and live the easy life. You need to have a personal drive of why you want to achieve success and what you plan to do with it once you have achieved it. Wanting to get away from your current job probably won't be enough. For me, it has always been wanting to enjoy the finer aspects of every day life, and not having to worry about little things, like finances. For most people, money is anything but a little thing. I always wanted to be successful not so that I could be rich, but so that I wouldnt have to worry about money. I believe worry is an unnecessary part of life, and I always hated having to worry about money. Money is the root of all evil, and even if you have a lot of it, it doesn't benefit your life quality unless you have some higher goal in mind of why you want it. If you don't have any reason for being involved with Network Marketing other than wanting some extra money to spoil yourself with, then this business probably isn't for you. The people who succeed in Network Marketing love what they do, and have a drive inside that fuels them to keep going.
The bottom line is this: To be successful with Network Marketing, you have to enjoy doing it, and help others enjoy it by working for their success. It is better to have a team of 10 hard working, highly driven enrollees who love doing what they do than to have 100 paid members in your downline who you never hear from. They wont last, and the chances are that only 5 of them will be successful. Network Marketing is not for everyone, and there is no shame in acknowledging that it is not for you at this point in life. Perhaps later in life, you will have a good reason why you want to succeed with Network Marketing, and you will be ready for it. You don't want to get into this business if you won't enjoy it. I promise you that.
If you are considering getting into the Network Marketing business, do yourself a favor and define for yourself A Goal, a Drive, and a Reason Why.
Joe Borowy is the Owner of where they stride to provide only the best, honest online business opportunitites. If you thought my article was helpful, please visit my website Thank you.

Friday, September 21, 2012

What is Network Marketing?

Network MarketingNetwork Marketing is another form of direct marketing. It is primarily more concerned with the organization of a sales network than with the sale itself.
The networker mostly starts to build up its own business before helping then other business partners to build their own, similar to a franchisor.
In difference to franchising where only one company opens new branches, in Network Marketing each independent business owner can open new network businesses, but with low financial investigations and without risk.
A networker undertakes the task to organize the network, to get paid for the sales qualified for bonus within that branch network.
Another feature of Network Marketing is to build up an transnational business by sponsoring international partners. Especially in Europe, Network Marketing represents one of the best examples how to make use of a single European market place.
A report from Prof. Dr. Michael Zacharias, University Worms, in 1996 has shown, that the total revenue in Germany made in Network Marketing is still very low (approx. 300 million EUR p.a.), but it will be fast-paced.
Network MarketingIn the Ukraine the market has just started (Nov. 2003), and the market in Russia will start 2004 too. So in these countries we will see incredible and surpassing business growth in the next years. If you are from the Ukraine or Russia, or you know people from there, then you can directly benefit from it. You can offer them an opportunity to build their own business.
This was just an example, there are more exciting success stories from other countries as well, e.g. Sweden, Korea etc., and the opportunity is identical in all supported countries.
In Europe the Network Marketing business is still in its infancy. Only 0.7% of trading are currently made with Network Marketing.
So this distribution channel has a huge potential for growth in future all over the world.
The Three Pillars of Success in Network Marketing are:
1) Residual Income
2) Leverage (of Time and Money)
3) Duplication
Network Marketing, 'MLM', and Multi Level Marketing are all terms that refer to the same type of business model. While many close-minded people outside the industry (and others who've tried it and failed), have biased or negative wrong impressions, and despite the fact that it is used and abused by many crooks and con-artists, this business model has exceptional performance potential.
There are bad apples in every bunch, and this industry has more than it's share. But it can produce outstanding results if you know how to find the right company. And to maximize your potential, there are a few simple concepts whose understanding is critical to your success.
Unlike franchises or conventional businesses, Network Marketing, MLM, and Multilevel Marketing are the only business models that take advantage of all three of the important, yet misunderstood principles of:
Passive Residual Income - Leverage - and Geometric Growth.
And the combination of all three of these elements is what gives the Network Marketing business model it's synergy and exceptional performance potential. In fact one outstanding company I'm aware of has actually built designed synergy into their business model.
Whether it's a franchise or conventional business, both require major investments of time and money, and special skills if you hope to be really successful. Even the relatively small percentage who achieve true success usually take years just to break even.
On the other hand, with the advent and popularity of the Internet and the rampant quest to "Get Rich Quick for Doing Nothing", many people have gotten all excited about affiliate, associate, referral, or co-op programs as they are sometimes called. But very few of the thousands of these being promoted have any real chance of making any significant money for the vast majority of people who get involved.
A perfect example is an email that was recently received from one of these programs who claim to be 'the best'. They bragged that they were paying "over $400,000 in commissions each month!" and have "now grown to over 650,000 affiliates!"
Those are interesting statistics some might get excited about. Let's see... if they're true... They're paying an 'average' of $.61 per affiliate... That's sixty one cents ! Wow! How would you like to retire on that?!
They claim later in their letter that some are making $10,000 a month. If that's true, then to come up with an 'average' of sixty one cents each, the vast majority have to be making absolutely nothing.
There is a much better way to achieve your dreams!

Top Network Marketing Company - Why Are the Products So Expensive?

Network Marketing CompanyI'm sure you've heard this question before, Why are top network marketing company's products so expensive?
This is one of those ever-present questions that networkers and direct sales people will continue to encounter (probably) forever--and there's always more to it than meets a simple answer.
One key is not to side-step it. There are good and genuine reasons for legitimate, premium-priced products--and of course there are over-priced ones as well. Honesty is best, as always, and I'll endeavor to give you the general truth with my answer to the question.
Special Products at Special Prices
First, the products available through top network marketing companies sales and distribution model are mostly what are called "specialty" items. They are higher priced products to begin with, having more costly ingredients and more complex designs or formulas; they are simply more expensive to make and package. Some well-known non-network marketed examples are Clinique makeup and fragrance products, Apple computers, iPods and iPhones, Armani clothing, Mercedes and Lexus automobiles.
Unless you're dealing with a scheme or a scam, these premium products outperform their cheaper, off-the-shelf counterparts, giving consumers more and better benefits. Since they have greater value, they cost more.
If these products are being outsourced by the networking company (produced by a "third-party" vendor/supplier), they tend to be manufactured in smaller production runs that do not allow for all the optimal low-cost advantages of buying and making in the high volumes mass-marketers enjoy. The manufacturing processes are more complex and exclusive. The profit margins are higher. This rdsults in a higher quality product with more attention to detail and quality control.
The reason manufacturers and marketing companies select network marketing and direct sales is because these higher-priced products are of higher quality, and they therefore require special methods of distribution and sales.
Network Marketing CompanySimply put, they cannot compete with the lower-priced, lower quality "commodity" products, which are sold based mainly on discounted mass-market pricing and brand awareness alone. Think Wal-Mart and Costco.
Specialty products are "education-intensive." They need greater explanation; for example, what formula, ingredients and/or processes makes the product more expensive than those mass-market goods available through direct response marketing (ruch as the Internet and mail-order) or retail chain store sales. Many require demonstration.
Mass-market products depend on advertising, promotion and merchandising at "point-of-purchase," all of which are required to get consumers' attention, let them know the product exists (to create "trial" especially if it's "brand" new), and to give them enough compelling reasons to purchase and keep on purchasing.
Going head-to-head with nationally advertised products, many to most of which are heavily discounted and sold at the lowest price possible, is a tough game for just about all smaller businesses to win. Imagine trying to sell vitamins or nutritional beverages or "prestige" cosmetics against a major manufacturer selling through Wal-Mart, or a natural toothpaste against a tube of Crest® through Kroger or Publix supermarkets.
Specialty products are perfect for the person-to-person, information-rich education, demonstration and service oriented methods of network marketing.
And that's where the important second aspect of network marketing's "higher price" comes in: the added value which you as a "distributor" add to the specialty products you sell.
Added Value Added
Network marketing and direct sales representatives add significant value to the product they sell and they are well paid when they do so successfully.
We reach consumers with the awareness of new products and services that ads and merchandising--no matter how persuasive or promiscuous--would not be able to reach out and touch. And by virtue of our one-on-one, personal relationship with these buyers, we appeal to them with a level of trust and service no mass-market, retail product advertiser could hope to compete with.
The extraordinary level of service Network Marketers provide is not available when buying through mail order or retail outlets. It is a real and tangible benefit, part of the product's value--and its price.
For example: Someone tries a network marketing anti-aging health product. It's personally presented for them--either in person or via mail--with a host of educational material about the product: scientific studies, article reprints, even books or tapes explaining how the product was made, how to use it, its unique features and its benefits.
Within one to two days, the network marketer again contacts the person to follow up, asking how they are doing, checking to see that their customer is following use directions properly, make recommendations, etceteras. These service calls continue daily, bi-weekly or weekly until the customer is satisfied and happy.

Friday, September 7, 2012

How to Start a Home Based Business and Grow It to Profitability

 Home Based BusinessIn this discussion, we are going to focus on issues pertaining to how to start a home-based business. Many of the most successful businesses were actually started it in someone's home. We're all familiar with the many fables and legends of individual starting multi-billion dollar enterprises in their basements and garages and certainly you can develop a highly successful business that is based from home. Of course, only a small and almost infinitely small fraction of the use of home-based businesses will become as successful as the next Microsoft were Facebook, however, you can develop a secondary income for yourself to the development of a home based business. In fact, over time, your home-based business may become your full-time job. When you are starting a home-based business, the most important thing to do is to first determine what type of business at you ultimately seeking to start. Many people, with the advent of the Internet, have taken the starting small e-commerce businesses were small blogs are able to generate a modest amount of income on a monthly basis. As such, we fully recommend that you harness the power the Internet when you are starting your home-based business. However, not all home-based businesses need to be based on the Internet or have a nationwide presence. For instance, if you are very good with numbers and have a strong background in bookkeeping, then it is very common for you to open up a part-time bookkeeping practice that is based solely out of your home.
One of the downsides to opening a home-based business that operates with local clients if they can come off as unprofessional that you simply work out of your home as it pertains to the services that you render. As such, you may want to work directly with the client at their location or providing services such as bookkeeping or other personal services that do not necessarily need to be rendered within your home. Over time, you may want to be to able to afford a small office space that will allow you to give your business and more professional look as it pertains to working with local clients.
It should be noted, on a side discussion, as it pertains to financing a small business it is somewhat typical. The small business administration typically does not allow for loans made to home-based businesses. This is primarily due to the fact that one of the reasons why the small business administration was created was so that traditional businesses could be launched and individuals would hire other people within their small business facilities. As such, you may be an excellent candidate for a SBA loan however you are going to need to move into a traditional facility before you're able to receive this type of financing. However, there are a number of other types of financing methodologies available to you. This may include using some of your own savings, using some income from your 401(k) or IRA accounts, taking out a personal loan, using credit cards, or working with a potential investor that can provide you with the financing that you need in order to launch a business. Of course, there is no proper way to ever play in the business, there are a million ways to skin a cat, and as such you may want to tap some unconventional means as it pertains to obtain financing for your home-based business. As it pertains to using credit cards or personal loans in order to finance your home-based business, this can be a very expensive endeavor. Most personal loans are unsecured by any type of tangible property more tangible asset typically has a substantially higher interest rates in the back associated with a secured loan. In most cases, your interest rate can vary anywhere from 9% to 20% per year depending on your overall credit score. As such, it is absolutely imperative for use loan financing in order to start your home-based business recommend that you very carefully to all potential financing options for using personal loans or credit cards. In time, there are other types of lending facilities that you can use as it pertains to receiving the financing that you may need on the ongoing basis.
After you determine which type of home-based business one a start, it is time to start the preparation of your business plan. Here, you're going to want to create a blueprint of how you intend to provide your services or products the general public, how you will integrate certain procedures and protocols into your day-to-day activities relating your to your home-based business, developing a well focused financial model that has a profit and loss statement, cash flow analysis, balance sheet, pregame analysis, business reaches page, and general assumptions page that will be used in conjunction with your company, and a detailed overview of how you intend to market your business.
As we discussed before, you can use the power of the Internet to market your business, even on a local level areas many home-based businesses are now also turning to popular social networking websites such as Facebook, Flickr, tumbler, and other popular portals in order to get the word out among people they know. You have a number of contacts within your local area that have a specific need for a specific type of service then you may be able to reach out to them directly by being able to directly contact them via e-mail and through the affirmation social networks. In fact, we strongly recommend that you create a Facebook page and work-related social networking page that showcases your home-based business in exactly the services that you provide as it relates to your company. If you are engaging in e-commerce operations, then it is extremely important for you to invest heavily in promoting your business through social networking media, search engine optimization, and pay per click marketing. In time, you'll find a number of people are able to find your e-commerce platform very quickly and that your infant every turn over rate will be extremely high. Although this is somewhat of a general article pertaining to how to start a home-based business, you are, again, engaged in the business of selling products on an e-commerce basis than we strongly recommend that you also use very popular third-party selling platforms such as eBay and Amazon so that you are able to, again, had a very brisk inventory turnover as it relates to your overall operations. In the following, that at the onset of your home-based business operations, you are typically able to sell more of your e-commerce-based merchandise through Amazon and eBay versus through a proprietary e-commerce site. Additionally, as it relates to e-commerce, these websites often charge minimal fees as it pertains to showcasing the products that you have for sale to the general public. As such, if you are selling products that you are either acquiring or producing on your own that you may want to check out this type of third-party sales platform in order to further your sales as time progresses. Of the utmost importance that you developed a very strong marketing plan especially to if you are engaged in e-commerce selling activities.
Relating to our discussion as it relates to financing ongoing business operations, once you have established your business then you may want to consider the possibility of taking credit cards. If you are heavily engaged in e-commerce, you can usually secure a line of credit based on your amount of money that is coming in through the credit card receivables that you receive. For instance, if you operate an e-commerce website that generates $10,000 a month in revenue then you can typically obtain a credit line equal to approximately $10,000-$20,000 depending on the specific lender. This is commonly known as merchant financing and it can be a very good way for you to manage your cash flow on a month-to-month basis as you plan on starting a home-based business. However, unlike in SBA loan that were conventional business loan, merchant financing based on credit card receivables is typically very expensive. As such, it is strongly recommended that you use this type of marketing sparingly as it does cost a significant amount of money. Typically, work in financing is approximately the same interest rate costs associated with a personal loan or credit card.
 Home Based BusinessAlso, you're going to want to think about whether or not you shooting for your business or create a limited liability company to manage your business operations. If you do decide to incorporate create a limited liability company then you will have the ability to create a bank account in the company's name, and don't conduct business under the company's name, and have that company almost act as a third-party as he progressed business operations. Additionally, there are many tax benefits associated with incorporating as you will be able to more effectively receive and deduct certain expenses for your home-based business. On a side note, and home-based business should ever be started for tax savings purposes. In fact, the IRS has cracked down substantially on individual entrepreneurs have created a home-based business solely with the intent to write off a substantial amount of their ongoing living expenses were ongoing business expenses. As such, you need to ensure that you are operating this as a legitimate part time business it is simply based out of your home. When you're starting a home-based business, we strongly recommend that you have a certified public accountant or tax attorney work with you so that you can properly plan out how certain normal expenses within your home will be deducted if you were Corporation or your limited liability company. Of course, you do not necessarily need to start a corporation or limited liability company in order to larger business operations. At the onset of operations, you can decide to work as a sole proprietor which means that ultimately everything that you do as you conduct business is through you as an individual and not as appropriate. However, with this comes the risk of unlimited liability if something should happen or if you are sued. For instance, many business experts often recommend that a individual business does incorporate into the fact that it should something go wrong be litigating party can typically only go after the assets that are held by the corporation. However, if you were acting as the sole provider, any leading party can come after all of your personal assets including your home, vehicles, retirement accounts, and other issues and assets that you may have been held by your person. As such, you should make a determination as to whether or not you will be engaging in any type of activity or selling any product that ultimately could have some potential for you don't wind up in court for one reason or another. Again, we always recommend these speakers with attorneys for all of the advice as it pertains to these matters.
This business can be a fun activity and certainly can provide you with a very good source of secondary income for the ability to eventually turn your home-based business into a full-time job. Again, in summation, you need to always ensure that you are starting a home-based business for the right reasons. The wrong reasons, as we discussed throughout this article, include simply starting a home-based business with the intent of paid tax deductions. The best reasons for starting a home-based business are typically because you want to have a business that provides you with ancillary income that this is your passion and that you want to create a full-time business out of it in the future.
The other thing that we always discuss, and recommend, you keep a very reasonable and levelheaded and reasonable as he progressed through starting your home-based business.
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Monday, September 3, 2012

The Really Real Reason That MLM-Network Marketing Fails

Network MarketingThere are many great articles out there; a lot of great information floating around about network marketing. Well, strike that. There is a lot of information floating around about network marketing, but it is not all that great. It seems to me now that everyone wants to jump on the bandwagon and "sell" the secret of why MLM / Network Marketing Ventures fail, and want to be the one to "sell" you the "real" truth about what it takes to succeed. Obviously, if you use "their" program, then "obviously" you will succeed. So what are you waiting for?
Well, friends, neighbors, fellow entrepreneurs and network marketing gurus, I am here today to blast the "secret" all over kingdom come. I'm writing the one article that will rock the Internet, will shake the MLM business down to its core, and will forever change the face of network marketing. OK, maybe it's not going to be that earth shattering, but it will be some good information. Unfortunately, I'm about to destroy the latest MLM "selling the secret" rage. Six thousand businesses are about to crash, because I'm going to give it to you free. It won't cost you one dime.
So what is the secret? Why is it that MLM / Network Marketing Ventures fail? Are you ready? Is your pulse pounding in your temple, your breath caught in the back of your throat? Has time slowed to a crawl and the drum roll sounded as the highly sought after, much coveted secret information is about to be revealed? Sorry to kill the climax, but let's look at something else first.
I recently read an article by Mr. Devlin Smith - 7 Tips for Network Marketing Success, May, 2005. I thought Mr. Smith's article had some merit. In it, he identifies six key elements that are crucial to the success of any MLM / Network Marketing Opportunity, with which I agree. These are:
o Company Stability
o Excellent Products / Services
o Excellent Compensation Plan
o Company / Management Integrity
o Momentum and Timing
o Support, Training & Business Systems
I then read a related article by Mr. Michael Sheffield - Why Some MLMs Fail, August, 2003. In his article he identifies the reasons for Network Marketing Company failures. They are:
o Inexperienced management
o Insufficient capital
o Ineffective distributor team
o Inability to recruit distributors
o Incommensurate compensation plan
o Ineffective products
o Lack of uniqueness
Network MarketingBut let's face it. MLM / Network Marketing Opportunities have come a long way. There are many companies that have the six key elements, but 97% of the business owners are still failing. There are many network marketing companies with experienced management and sufficient capital who have effective teams and are able to recruit distributors, who have great compensation plans, effective products and unique opportunities (whew! that was a mouthful) - 97% of the individual MLM / Network Marketing distributors don't make it. WHY??
OK. NOW here it comes (drum roll please, but don't hold your breath).
The main reason that people who work at home, who utilize MLM / Network Marketing as their home based business model fail in their home business is this. It's wrapped up in the titles Multi Level Marketing and Network Marketing.
People don't know how to market.
Uh-oh. The Cat is out of the bag. Colossal, huge million-dollar secret rocks Internet! Wait! Did you blink and miss it? Let me throw it out there again.
People don't know how to MARKET. The MARKETING part of MLM and Network Marketing.
People don't know how to market their business.
People don't know how to market their product.
There is so much hype out on the Internet today. Everyone advertises that their plan is the easiest, you don't have to do anything; just sign up and make it rich. You've got to ask yourself, "Self, if I can sign up, do nothing, and get rich, why isn't everyone doing it?" Because you and I both know this is not the case. To me, this mode of business building doesn't make much sense. If I sign up a bunch of freeloaders who want a home business that's free and easy, who expect to do nothing and yet make money, what is my business going to look like? It will look like exactly what it is. I'll have a bunch of bums signed up who will contribute absolutely nothing to their success nor mine, who will blame me that they didn't succeed. My business is doomed to failure. Well, I don't need any more of THOSE pancakes, thank you very much.
Now most people know better than that. They know there has to be SOME work involved, but even then, they get immersed in a program or opportunity, still not knowing exactly what it takes to be successful. The one thing you NEVER find is someone saying, "Look dude, they only way you're ever going to make it is if you know how to market your product, service, or business." It's the one key that is ALWAYS missing. I don't care how great the program is, how unique the opportunity, great pay, great product - in the grand scheme of things, it just doesn't matter. If you cannot get that opportunity out to the masses for them to see or use, you're going to fail. You can go search the Internet right now and find a number of "great" systems and software that will supposedly help build your distributor network. But none of them work AT ALL unless someone else SEES it.
To me it is reminiscent of all the diet marketing you see on television. Whatever the pill, drink, meal, shake, etc., the marketing always includes the phrase, "with proper diet and exercise." With their phenomenal product, AND diet and exercise, you'll lose weight, VIOLA! But then I say to myself, "Self, if I just had the proper diet and exercise, I would lose weight and wouldn't need their awesome product. In fact, I NEED your product, because I DON'T diet and exercise." It's the same way in MLM / network marketing circles. People don't know how to market, so they need programs and software and schemes that will do the job for them. Accordingly, there is an entire ancillary network marketing industry that's making millions of dollars selling the shovels required to mine the gold. Selling you all the marketing tools you need to be successful.
What a deal. What's really interesting, is that if you ask around, you will find that most people spend more money on the plans, software and programs, TRYING to entice distributors, then they spend on using or marketing their product / service / business. It's like this massive rat race, everybody's wheels spinning, running in circles, spending enormous quantities of cash in every direction, except in the one direction that can really make the difference. So at the end of the day, when all is said and done, the money was spent, no marketing was performed, Joe Home-Biz is broke, and he's now one of the 97% who only made it three months before his business caved in. Hey, but that's OK, because at 100,000 people looking for a home business every month, there will be a long line of network marketers lining up for the newest program, who still don't know what it takes to be successful.
So what's the answer, you ask? Why, Thanks! I was hoping you'd ask that question, because now it's my time to shine!! I'm neither a network marketing guru nor an expert. I'm actually a Safety Professional, so if you need help with OSHA regulations, I'm the guy. But I've also been through the school of hard knocks within the MLM / Network Marketing Industry, and so will make a few observations. (If you've read down this far, you might as will drink your coffee and finish this article!)