Network Marketing Business Success – A Nuts and Bolts Guide

If you have an entrepreneurial spirit and you’ve ever considered starting your own business, you’ve no doubt explored the idea of network marketing. Also known as multi-level marketing (MLM) or direct sales, network marketing is one of those businesses that seems to attract schemers and con artists, giving the entire category a bad reputation. Try telling someone that you’re involved in network marketing and they’ll most likely think, if not say it outright, “pyramid scheme”. This unfortunate association is not entirely unjustified, as there have been many highly publicized cases of fraud and abuse in the network marketing business. But let’s think about what this business is all about and how it should be viewed when operated legitimately.

Network marketing, MLM, direct sales or whatever term we want to use, is nothing more than an organization of independent sales reps selling a product or service, while also recruiting others to sell the same merchandise. These recruits then provide an additional income stream for the person who introduced them to the business. This is known as a “frontline” plan and involves an up- and downstream commission structure. In and of itself, this type of plan is not inherently bad and can be an inexpensive way to build a small business. If the product or service being offered is in high demand and the structure of the company is equitable and legitimate, it can be a lucrative endeavor for a motivated entrepreneur. In fact, one of the primary complaints about most MLM ventures, that the new recruits don’t make any money for themselves, but more for their “upline” – simply isn’t true. Any new entry to a network marketing company can be a success, if enough effort is put into recruiting and grooming their downstream.

So, let’s talk about what to look for in a company that you may be interested in. First let’s realize that network marketing, MLM or direct sales companies are legal in all 50 states, as well as more than 100 other countries. Also, the Federal Trade Commission (FTC) has ruled this type of business structure as legitimate and has issued a set of guidelines for Direct Selling Associations. With that being said, here are some things to look for when researching which of these businesses may be best for you:

  1. Look for a company that sells a product or service that you personally believe in. This is a crucial element to success, as you will be selling not only the item, but the system. A product or service you are passionate about helps to build that same passion in your downstream recruits. And remember, your downstream is your future.
  2. You also need to consider the stability and integrity of the company you are joining. How long have they been in business? How many tiers are above you? What is their reputation in the industry? These are all important factors in your success selling the product, as well as your downstream.
  3. Let’s not forget the pay plan. How fair is the commission structure? What percentage of each dollar sold goes to you, your upline and to the management levels? This may be the most crucial element to explore when choosing the right company for you. Can YOU actually make a good living on this pay structure?
  4. Training is also an essential component of the equation. How long and in what form is the training? Does their style of training suit your personality? Is it easily transferred? Remember, you will need to train others in your downstream and the robustness of the training provided, directly impacts your success.
  5. Finally, ask yourself “does it feel right?” This is a key question and one that often goes overlooked. After the presentation and as you’re browsing through all of the literature about this company, stop and check in with yourself. If you feel uneasy about any aspect, explore that. Did they ask for a large initial purchase of their products as “samples”? Did they offer little in the way of future support? Were they truly interested in your success? How did it feel?

For any entrepreneur interested in network marketing, MLM or direct sales ventures, I recommend researching the business extensively. The better educated you are, the greater your likelihood of success. Realize that there is a huge initial investment of time and effort, before you ever see any real money. But also know, if you’ve done your homework and chosen the right company, with the right line of products and a fair compensation plan, you’re on your way. Stay focused and work your plan. You are limited only by your commitment and belief in yourself.

Targeted Marketing Basics

Any person with dreams of becoming successful in real estate sales wants to answer the question – how do I find masses of buyers? The first thing you need to do is understand the foundation behind finding masses of buyers. Many real estate dealers make a common mistake when they begin to approach marketing. This error is in using a large, untargeted marketing approach. A common method is to use television, newspaper ads, or newspaper inserts in a broad based campaign designed to reach as many people as possible.

The problem with this decision is that you may or may not actually encounter prospective buyers, those who are actually looking to make a real estate purchase. This mass market strategy is not the best use of your advertising resources. Even though you may receive a few leads from television commercials or newspaper ads, there are other ways that you can spend your marketing funds that can help reach qualified prospects. Classic television advertising, for example a software commercial during a ball game, works on the theory that hopefully someone will see the product and be interested enough to pursue the software.

If you do not have young children, an ad for Pampers will not be designed to target you. The goal is that many people will see the ad and some of them will be in the right market group to purchase the product. Targeted marketing, on the other hand, is based on the principle of identifying your buyer’s characteristics and marketing directly to them. This has been helpful in qualifying the prospects. This method has been proven to work much more quickly, since the more targeted your approach is, the bigger bang for your buck you are going to get. For this reason, you would not want to advertise a piece of land in a weight loss magazine. One has nothing to do with the other!

Affiliate Marketing Basics – What Is Affiliate Marketing?

This article is all about the basics of affiliate marketing and it covers what it is? And how it works? This article is aimed at beginners that want to find out a bit more about this type of business.

What is it?

The simplest way to explain affiliate marketing is that it is a way for an affiliate to promote a product, service or website for a business, which in return generates a sale for that business and which then in return earns the affiliate a fixed commission or a percentage of the sale that it help make. So basically affiliate marketing is a way of making money online.

A business is an organisation or a website that has a product or service to sell. An affiliate is a website owner that promotes a product, service or website for a business.

How does it work?

Basically an affiliate earns money every time it sends a potential customer from their own website to a businesses website which leads to an action. So what this means is that if you send someone from your own website via an affiliate link to a businesses website and they purchase a product or service you would receive money for it.

Three ways you can make money through affiliate marketing are pay per click, pay per sale and cost per action.

Pay per click is when a potential customer clicks on an affiliate link on your website and is directed to a businesses website you would receive money for that click.

Pay per sale is when a potential customer clicks on an affiliate link on your website and is directed to a businesses website but you would only receive money if the customer buys the product or service.

Cost per action is when a potential customer clicks on an affiliate link on your website and is directed to a businesses website, you earn money when a customer registers.

Affiliate marketing is a great way of making money online without having to hold any inventory or having to process payments. It is also very easy to get started and you can even work a couple of hours a day and still make a good living. Another major benefit of affiliate marketing is that its a business that you can run from your own home.