This is probably the most significant post I’ve ever written regarding network marketing and direct sales business. So I hope you’ll read it all the way to catch the golden nuggets.
Here’s the truth:
You can make a lot of money in network marketing…
IF you understand the business.
I made over $10,000.00 in 3 short months in my last network marketing business so I know it can be done. And I’m going to let you know how I did it!
But first, let’s understand some basics…
TRUTH ABOUT NETWORK MARKETING
Network Marketing (or direct sales) is the easiest business to start because it requires very little investment. However, people go into this business thinking that they don’t need business intelligence to make money from it (which is not true). So, they end up spending a lot more money than actually making any.
Are you having the same struggle?
Better read on!
I know it’s hard to admit that we spend more money on:
- Buying products
- Paying for conference and workshops
- Meetings and educational materials
- Travel cost
With the hopes of making it back—but rarely does it ever pay off—and we don’t understand why.
THE RIGHT COMPANY MAKES YOU MONEY
If you’re currently in network marketing business and you’re struggling, you need to review the company you’re with and see if it’s the best one for you. If not, then it’s time to change company. Your goal is to make your dreams come true, not someone else’s dream. This is the hardest bit to swallow because it’s easy to get so attached to a company—without realizing it. I say this because in my experience, not every company is designed to make YOU money. What works for someone doesn’t mean it works for everybody. Period.
Starting a home-based business in the multi-level marketing industry can either be a winning decision or a bad one—depending on these FOUR factors:
1.Company profile: Don’t go into the business without doing your research. Do a background check about the company—financial status, member size, legitimacy, overall performance in the industry, and if their vision and business practice match yours. Choose a company that’s financially stable—at least in business for 5 years. Too many network marketing companies have come and gone over the years.
2. Products: The company’s products must be of value, high quality and not overpriced. Preferably the product should be consumable, so customers can do repeat purchase—eliminating the constant frantic need to find new customers. Of course, you must also love and use the products yourself. Most importantly, the products must have a mass appeal—it must appeal to most of the people in your circle or your market niche.
3. Marketing system: This shouldn’t be a big issue, but there are companies who are old school and discourage you from promoting your business online. Some even go as far as preventing you from disclosing the name of the company when marketing your business.
Also, be aware of auto-ship system. While it’s great for the company (and you’re likely get better commission initially), it’s hard to sell this idea to consumers—so it’s not profitable in the long run. Because the reality is: people have a lot more choices now than ever before, and less reasons for them to commit to an auto-ship.
4. Compensation plan: The crux of the business lies in the compensation plan. If you can easily figure out how to make money, then there’s a bigger chance that you’ll succeed. But some company’s compensation plan is so complex, you may need an MBA to figure it out.
The easiest way to see the opportunity’s income potential, is to ask yourself these questions:
- How many of X do I need to sell in order to make X amount of dollars?
- Are there additional requirements BEFORE I get paid?
- How easy is it for new recruits to make money?
The most important reason why you need to ask these hard questions is because: new recruits will stay motivated for as long as they see money coming in.
If you can figure out how you can make your first $300 and can teach that to a new recruit, you’ll have a better chance at winning and making more. It take skills and strategies to make it work.
HOW I MADE $10,000 DOLLARS IN JUST 3 SHORT MONTHS
So, how did I do it?
I solved the biggest problems in Network Marketing which are:
- New recruits not motivated enough or losing interest and eventually quit—leaving you back at square one.
- Customers stop buying, forgetting you exist—thus forcing you to continually chase new customers.
My biggest challenge when I first started in network marketing (which caused me to struggle in my business for years), was how to balance getting new recruits and new customers, while keeping what I had going—motivating my team to keep going and keeping customers happy.
I’m sure you’ve experienced this as well.
It was a constant struggle.
My new recruits were falling off the wagon faster than it took to recruit them. And remembering to call my customers to put in their orders had me in constant frantic state—panicking and wondering if I’ll have enough sales at the end of the month to meet my commission requirements. Add motherhood to this stew and you’ve got the perfect overwhelm!
It was the opposite of the dream and lifestyle I signed up for.
I knew I had to change something drastically as I was going backwards no matter how hard I pushed myself.
I was committed, but it wasn’t working.
So I quit the business, and decided that if I were going to go back to network marketing, I needed to figure out how to do it right.
And figure it out, I did. It was a major breakthrough for me. I applied everything I learned in my previous careers and businesses— what worked and what didn’t.
In 2009, I joined a network marketing start-up that provided money exchange and long distance. I immediately tapped my network of family, friends and colleague and got busy presenting the service. But this time, I changed my sales approach. I ditched hard sell. People joined my business as customers, and then I nurtured them to become leaders.
While promoting and recruiting, I also spent a lot of time learning everything I could about the business and services the company provided so I could teach my team. I perfected how to do presentations, so I didn’t have to rely on my “uplines” to make presentations. I traveled, and made presentations for my leaders. I created an online group (Facebook wasn’t that popular then) so I could post news, and answer questions from new team leaders and customers. My leaders were winning and making money.
On my first month, I made $2000 in commission and bonuses, then over $3000 the following month. The third month, I made over $5000.00.
THE PROBLEM IN NETWORK MARKETING IS LEADERSHIP
Most people who go into network marketing business are not trained leaders—heck, they’re not even sales trained.
They have the passion and good intentions, but may not have managerial and leadership skills to take you and your team to the next level. You’d be lucky if your recruiter is a leader who knows how to build a business and teams. If not, you’ll be frustrated with very little directions and the only way to make it is to learn the skills yourself. Because not only does your business growth depends on it, your team’s growth as well.
Network marketing companies offer some training in various ways. But the trainings come in bits and pieces—if at all. They don’t teach you everything you need to know to build a thriving business. Those who are at the top of the game (small percentage) have been doing it for years. Either they figured it out or they’ve had sales & business training. You hear their successes at conventions, but what you don’t hear is their previous struggles and the number of times they’ve failed and the many hours they’ve dedicated into building their networks and their skills.
WHAT YOU NEED TO MAKE MONEY NOW
Making money in network marketing is not really rocket science. But there are SPECIFIC SKILLS that you need to learn —to start, build, and grow a solid network marketing business that you can really rely on to provide you with passive income. It’s not something that you can just “wing it”. To win, you need the skills and strategies that can be duplicated by your team.
If what I’ve written here make sense to you, then you’re in the right place and what I am offering is for you.
I am on a mission to teach every network marketers how to make money. The HOW TO is contained in the NETWORK MARKETING PROFIT course—which I will be releasing very soon. Details and specifics will be sent later in the coming weeks, so be sure to be on the list.
In the mean time, I’d like to offer you my 45 PROSPECTING QUESTIONS to get you started. These mighty questions are what will get your foot in the prospect’s door.
PS: I’d love to hear your thoughts, comment below and tell me which question you think will work best for your business?