Ideas For Success In A Network Marketing Business

ideas for success - Big Texan

The Big Texan

I was thinking of making the title “How To Succeed In Business” because perhaps these tips could be applied to any business and not just in network marketing (or MLM).  Business is business right?  The following are my ideas for success in a network marketing business, that probably could be applied to any business.

Have Your Own Brand

The first step to succeeding in business is to have your own brand.  If you are Joe, the XYZ distributor, you are promoting the XYZ company.  Create your own brand… perhaps Joe Smith, Network Marketing Coach, or Joe Smith Company; something to differentiate yourself from all the other distributors in your company.

Add Value

If you are just “You can buy from me too”, you are adding no value.  You must add some sort of value.  For instance, a while back we made great looking baskets and sold them as a product.  By reorganizing the product the way we did, we added value to the product.

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We Ended Our Retail Operation, Should You?

We used to be a big huge sellers on Amazon.  Big.  We had a basement warehouse and bought by the pallet fulls.  We used FBA on Amazon… sending in shipment after shipment of product.  In fact, at one time we had more product in the Amazon warehouse than in our own stock.

We also sold direct to consumer, which was a bit of business.  We sold locally by delivery and nationally by mail.

It sounds like we should have been rolling in cash but we were not.  Amazon was tricky because we sold a commodity product that others could also be selling.  Lowest price wins, and many sellers would sell for a loss.  So we took a different tactic, we started selling items that were soon to be discontinued or were already discontinued, buying up a large portion so we could outlast the other sellers.  Sometimes we won, sometimes we lost.  We gave away a lot of product that our buyers did not want.

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Why Network Marketing (MLM) Doesn’t Work For You

It is seriously irritating.  You see all of these successful people who do really well, often on a weekly basis, and you just cannot seem to sponsor consistently or build any kind of business.  In this article, I am going to give you some suggestions on what you might do differently in order to attract people into your business.  Perhaps some things you have not even considered.

Get a life

At one point, all I was doing is working hard at my business.  And as they say, all work and no play makes Johnny very dull.  Nobody wants to be around you if all you do is talk work.  All you know is work.  All you are is work.

Often the way to break this habit is to play golf, be in the moment at your children’s activities, travel, do something that adds to your subject matter rather than just work.  If you can talk to people about normal, common things, they will relate to you more.

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What Are The Phases Of Network Marketing?

Chelsey Traveling Europe

Chelsey Traveling Europe

Network Marketing recruiters often take advantage of the phases of network marketing to swipe distributors from other companies.  For instance, if you find it impossible to recruit, you might find an advertisement about no recruiting to be appealing.  The truth is, you have to go through the darkest dark to get to the brightest light.  Things are not easy starting out, and you have to work through the difficult times before you will get to automatic monthly income.

Let us go over the phases so you know what to expect:

1. No downline

During this phase you are trying to recruit your first distributor.  You may find it “impossible”, probably because you are approaching the wrong people, or not enough of the right people.  To overcome this phase, create business processes with activities and concentrate on the activities rather than the results.  When you realize an activity can be improved, improve it.  Contact people interested in starting a business for new leads, and try to get more and more new leads.  Again, don’t worry too much about signing people up, that will come in time.

2. Flows like an ocean, in and out

When you start sponsoring regularly, which you will if you concentrate on activities that lead to signups, you will notice several types of distributors.  The kind that join and do nothing.  The kind that spend a lot and then drop off the map.  The kind that buy for themselves once in a while.  Often this leads to people joining and people quitting, often at the same pace.  This is normal… The thing is, somebody will join and grow, and you will collect these kinds of distributors one by one over time.  The growing distributors are the ones, like you, serious about building a real business and they will lead to large bonuses over time.

3. More new distributors that quitting ones

This is sort of a singular momentum phase where you personally are picking up more new distributors than those that are leaving.  This happens once you become recognized as a leader within your company.

4. Group momentum

Once you hit a certain point, your group will start adding as many new distributors as you do per month.  This is the start of the group momentum phase.  Three and four often come quickly one after the other.

5. Plateau

Often after a period of growth, you will hit a plateau stage where bonuses are about the same for several months.  Breaking plateaus can be challenging, but they usually occur after you hit a point where the business is supporting you.  You have several options here: you can try to bring in more distributors personally, you can try to help your group bring in more distributors, or you can wait for the situation to change on its own.

6. Decline

A major change in the marketplace can bring decline, either for a short or long period.  Perhaps people decide they don’t like the popular product in your product line, maybe regulatory changes bring decline, or perhaps people jump ship for something seemingly better.  The important thing is to determine a cause and see what you can do about remedying it.

I have seen decline mainly in fad product companies that have a swift decline in sales, but I have also heard of other situations where you’ll see decline.  This is fairly unusual for long established companies.

When you know the phases of growth within network marketing, you can better prepare yourself against the negative and against those who would steal you away.  Best to give a good company a chance.

The Zen Of Network Marketing

Chris, Chelsey, and Owen in a Nashville Forest Preserve

Chris, Chelsey, and Owen in a Nashville Forest Preserve

Have you ever wondered why some people, perhaps a select few, do so well sponsoring while most of us just suck at it?  You have come to the right place, my friend, because I am going to tell you why.  Plain and simple, you try too hard.  You are too dedicated.  You call your list regularly.  You make follow up calls to interested parties.  You do nothing but sell your business opportunity.  No golf, no parties, no fun.  Just… work.  And you know what all work does to Johnny?

Let us instead tune into the Zen of Network Marketing.  First, stop selling your opportunity.  Take a break.  Find a fun thing to do, perhaps for a couple of days.  You need to disconnect before you take the next step.  Let your mind unwind,  stop… thinking… about… it.  What do you enjoy doing?  Do you have a hobby?  Do you spend time with your kids?  You need to relate to people so you need to develop some social skills.  You cannot be selling your opportunity all the time, you need to talk about other things.

Now back to business building.  Here is what you do: Never talk about business unless you are asked.  When are you asked?  When somebody asks you what you do.  What do you do for a living?  Have a 3 sentence answer to this question and that is it.  You will get asked this question when you interact socially with other people.  Give them a short answer such as: “I own a distribution business and my company sells through a network of small business people. Our products help our customers lose weight”  Then let the subject drop and move on.  If they insist on asking you more, just hand them your business card and ask them to give you a call sometime or visit your web site.

What about opportunity meetings, business presentations, or good old fashioned hard sales?  You do not need them.  You are doing very well and you are enjoying time with your family.  You do not need to spend all that time working, unless, you just want to help out others out of the goodness of your heart.  Your experiences allow you to help by writing how to articles, publishing a blog, or distributing free information in other ways.  You may also get to the point where you sell information.  This is actually a more productive use of your time that will establish you as an expert.

Still, do not kill yourself.  Have a life.  Talk to people.  Make friends.  Do all of this without a hidden agenda and you will do great.

Network Marketing: What You Don’t Know That You Don’t Know

Owen Satterlee at Disneyland

Owen Satterlee at Disneyland

I always wondered what secrets Network Marketing experts hold back.  What they do differently that makes them so successful.  Here is a partial list:

1. There is nothing you do not know except for how hard and or smart you need to work

It is all a numbers game and it looks something like this:

a. For every 1,000 people you contact, 10 may show an interest
b. For every 1,000 interested people, 10 may sign up
c. For every 1,000 signups, 100 – 200 will stay active
d. For every 1,000 active, 30 or so will be superstars

So it takes a lot of talking to people to get to a superstar.  You can improve your numbers by advertising or educating prospects online.

2. Your best distributors will be close to you.  If you know what you are doing, having a friend learn from you tends to produce a very good distributor.

3. Great remote distributors will call a lot and have good questions.

4. People will sign up, spend a lot, then quit.  Unfortunately these people are looking for a get rich quick scheme.

5. People sign up when they are ready, not when you are.  Keep things light and positive and you will get good results in time.

6. You may have a great distributor already in your downline.  He just might wake up in 20 years.

7. Quitting is the only way to fail.

8. You have to be successful in order to become successful.  How does this work?  Depending on how you find prospects, you will have to be professional, dress well, be well groomed, speak well, understand your products and business, and have confidence.  This is not about lying to the prospect.

9. You cannot tell a prospect what you make, good or bad.  Your results are not typical.  I would also make sure to set reasonable expectations.  For instance, telling people it is easy is probably not a good idea.  Telling people it is hard work but very straight forward might be better.

10. Be different.  If doing the same thing as others works for you, feel free.  If it does not, it might be a good idea to try something different, often.  Keep trying different things until you find something that works.  This is especially true in sales.  Selling the same way as others probably does not work.  In recruiting, we just try to reach a different audience from everyone else.

All you really have to do to be successful in Network Marketing is to create a process for recruiting and training distributors.  Keep working your plan and you will do great.

Frustrated? Change Your Mindset, Improve Your Business

Chelsey with guitar through camera

Chelsey Satterlee courtesy Deanna Roberts

I have to tell you something: You cannot get anybody to join as a distributor in your company.  You cannot, so why try?  Why make yourself crazy trying to get Bob to join.  Bob is not going to.  Bob is tired of hearing it.  So how do you fill up your downline with good distributors?  Follow these rules to improve your business results:

(Note: These are not facts, just a way to think)

Rule #1: Nobody you know will join your company

Rule #2: Although nobody you now know will join your company, you have an obligation to promote your business to your “warm market”.  You have an obligation to be brave, let your family and friends know what you are doing, and to give them an update from time to time.  Family and friends can talk to each other, and can be excited about what you are doing.

Rule #3: Your friends know people.  So does your family.  If you are excited and talk about your business, they in turn will talk about it to others.

Rule #4: Anybody who asks about starting a business with your company deserves information they can hold.  Get them information, then follow up for questions.  Do not try to explain the whole business to your prospects, it is just too difficult.

Rule #5: Be prepared with features and benefits, and to answer objections.  Objections may be pleasant or hostile.  Either way, they deserve an answer.

Rule #6: Join or not, it is okay.  No need to force.

Rule #7: It will take time to sponsor your first distributor.  Let it.  It will get easier and easier as time passes.

Rule #8: No frustration should be involved.  It has been a month, okay.  It has been a year, okay.  No problem, just let it take time.

Rule #9: You should be focused on results in lead gathering, not signups.  If you are not getting enough leads, you should somehow be promoting more.  This may mean networking.  It may mean advertising.  Lead gathering is key.

Rule #10: No particular lead will sign up.  Some leads take years.  Some take days.  Some will never sign up.  No matter what, it is okay.

Your prospect will sign up when they are ready, not when you are.  No amount of persuasion will change that.  The only way you can get more sign ups is by increasing the number of leads you get.  Even then, it might take a while.

Get Rich By Creating Value

"Goldeagle". Licensed under Public domain via Wikimedia Commons - http://commons.wikimedia.org

“Goldeagle”. Licensed under Public domain via Wikimedia Commons

Wow, I just gave you the secret to riches.  Create value.  But what does this mean?

I was thinking about how to provide people with the tools they need to be successful at making money on the internet.  Sure you can build a website, you can sell products for profit, you can create an online tool, but if you are not creating value… you will not find any real success.  And by success, I mean money, riches, or wealth.

So what is value and how do you create it?  Value is something that means more to somebody else then it takes to produce the something.  For instance, if I have a way to save a company $50,000 on their energy bill, I can charge for the information right?  Yes, the value is the way, or information, to save $50,000 on energy.  Probably worth less than $50,000 and more than $1, but there is a value that can be placed on it.  The only problem is that everybody knows these ideas and many people have written about them, so the value of the information is much lower.

That is the typical problem in network marketing.  You want the easy sell or easy sponsor, so you think it is enough just to tell people you do XYZ network marketing company.   Perhaps if you were the only XYZ network marketing distributor this would work, but you are not.  What value do you provide that nobody else does?

There are ways to provide value in network marketing.  Probably the best one today is your unique perspective on finding leads, staying organized, or creating a group to depth.  People are hungry for information on doing the business so if you have something that works for you, you can let other people know.  Can you sell your information product?  Only if it is truly unique, complete, and entertaining.

Could you just give away your starter kit or offer a money-back guarantee to provide value?  Giving away the kit is a bad idea, because it encourages people to join and do nothing.  A money-back guarantee is good, but easy to emulate.  Tools to be successful in your business are going to be your best avenue for value.

Your value to your multi-level marketing company can be producing sales, no doubt.  How do you produce sales?  Many online avenues for selling are strongly discouraged by MLM companies, and many others do not produce results large enough to support a person.

You can produce network marketing results by either creating a new market or competing with your fellow distributors.  Competing tends to be a bad way of doing business.  We always want competitive advantage where we can get it, but creating a new market will produce much better results than snatching market share away from others.  How do you create a new market?  Reach people that are not being reached, and produce value within that market.  People already need and want what you are selling, but nobody has presented it in a way they understand.  Be the person that does.

How do you create value?

What Is Network Marketing?

Network marketing is generally a way to spread information about a product.  For instance, you tell your friends, they tell their friends, and so forth.  Network marketing allows you to get paid for all of these referrals.

Multi-level marketing is an offshoot of network marketing.  Generally, multi-level marketing is a compensation structure where you get paid for product sales you make, and product sales that people you refer make, and product sales people they refer make… and so forth.  The compensation structure of a multi-level marketing program lays out exactly what you get paid for each sale.

Unlike affiliate marketing, network marketing compensation will start out very small but grow to an indefinite size over time.  Affiliate marketing depends on the efforts of only one person: you.  Network marketing depends on the efforts of many people.

We use both affiliate marketing and network marketing as part of SplashPlan.com.  Affiliate marketing allows you to make quick income from services and training sales.  Network marketing allows you to earn long-term residual income.