Network Marketing Explained

Network Marketing is also called Multi-Level Marketing or MLM for
short. If you happen to be thinking about getting into Network
Marketing then this may be helpful for you. There are things to
look for in a Network Marketing business that will keep you from
just spinning your wheels and getting nowhere. It is true that
most Network Marketing businesses fail. That is what happens to
most any business in their first five years. But if you know how
to do it right, then Network Marketing is the best career in the
world!

You should be able to start with little cost. Avoid big sign-up
fees and expensive frontloading where you have to spend thousands
of dollars to get started, buying your way to the top of a pay
plan, having to purchase large volumes to qualify for your check,
and having to stock inventory yourself. Run away from anybody
requiring you to do those things.

Do not fall for outrageous claims such as making money with no
selling. In Network Marketing you can get people placed under you
without having to do anything if the people above you are doing a
lot of work and your compensation plan is a forced matrix or
power leg binary. That kind of thing is called spillover, but you
cannot count on getting rich from that. People joining with that
expectation will be disappointed. Even worse, do not get involved
with a company that is offering a business opportunity but has no
product or service to sell other than the opportunity. Always,
before you join any company, go to the Internet search engines
and check for complaints and scam warnings.

Sales and distribution are the backbone of all business. Direct
sales are the type we are more familiar with. The products of a
company are peddled by a salesperson that receives a commission,
which is a percentage of the money gained by the sale. That is
the traditional sales approach. The salesperson can also be paid
on an hourly or salaried basis, even per lead contacted as long
as they meet a sales quota, but the source of income for business
is always sales driven.

Network Marketing is proving to be a better way, both for the
companies and their product distributors or salespeople. You are
still selling a product or service for the company, but you also
are looking for people who want to do what you are doing, selling
the company's product and making money doing it. You are building
a team. What that does is take sales to another level, because
once you get someone else selling for the company, the company
has a new distributor and you get paid not only on your sales,
but also on the new distributor's sales as well.

That is why it is called Multi-Level Marketing. When that
distributor on your first level gets a new seller for the
company, you also get paid from the work of that new seller. If
that new seller on your second level recruits, then you have a
third level. You can have a team building under you, doing sales
for you, making money for you, and it can be happening without
extra effort on your part! The payment plans in MLM mostly
include binary, breakaway, matrix, stair-step, and the best is
unilevel.

With the unilevel plan there is no limit to the number of people
you can have under you at the first level. The purchases from
your first level are where you get the highest commission.
Commissions for purchases from your second level on down are not
as high percentage-wise, but can add up to a big amount through
the shear number of sales. Those earnings are often called
leveraged earnings because you have utilized the work and the
time of other people. That is the way to get wealthy!

Network Marketing is about the referral and soft sell. You do not
have to give people the hard sell to be successful. You simply
use the company's product or service and recommend it to others.
It helps a great deal if you are passionate about it. The company
provides promotional materials such as sales letters, brochures,
recruiting calls, recorded messages, websites, flash movie
presentations, DVDs, and even magazines. They should be
persuasive materials that put forth the benefits of the product
or service to the prospect and should include plenty of
testimonials.

The company should have a valuable and desired product or service
that people would really want to have. Preferably, the product
should be unique and manufactured by the company itself. You want
the service to be a continuing monthly service or the product to
be a consumable one, so that you get recurring purchases every
month and an ongoing income from each customer.

With Network Marketing you will not just be making one-time sales
as in direct marketing. You will be building a residual income
that keeps coming in whether you work or not. It is the perfect
way to build a retirement income, so the company you choose
should be debt free and have been in business for at least 5
years so that you know it is solid.

Having found those things, you then present the business
opportunity and the product to as many people as possible. Your
warm market is people you know, such as friends, family, and
co-workers. Beyond that, you can advertise, or buy lead lists of
people interested in starting a business or interested in your
type of product or service.

For Network Marketing the most targeted list you can get are MLM
Genealogy Lists. Those are people who have showed an interest in
Network Marketing by already having been involved in it. Do an
Internet search for MLM Genealogy Lists if you want to buy one.
Those lists are not expensive and many of the people on it
already have experience building a business. Those are the people
you want on your team!

To your success,

Charlotte Howard
WorkHomeadvice.com