Network Marketing - how to be successful

Network Marketing – how to succeed

Network Marketing is a business model in which a distributor network is needed to build the business. Usually such businesses are also multilevel marketing in nature in that payouts occur at more than one level.

Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in America, including Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.

Network marketing programs feature a low upfront investment--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's "downline," and their sales generate income for those above them in the program. Things can get sticky when a network marketing network compensates participants primarily for recruiting others rather than for selling the company's products or services. A network marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme.

Network Marketing – what to look for

There are six key elements you should be looking for [when selecting an opportunity].
1. Stability - How old is the company?
2. Excellent products or services that consumers will use and need more of.
3. The pay plan - How even and fair and generous overall is the distribution? This is really crucial as the pay plan represents exactly how you'll get paid--or not get paid. There are really only two questions to ask regarding this: How many pennies out of each sales dollar get paid back to the distributors each month, and how fair is the distribution of these pennies between the old members and the new members?
4. The integrity of the company and the management - As much as possible, investigate the experience of the CEO, their experience in the network marketing industry, and their background. Have they been successful in other companies in the industry? Do they have a good reputation?
5. Momentum and timing - Look at where the company's at, what's going on with the company, and if it's growing.
6. Support, training and business systems - You may have chosen a great company with excellent management, products that make a difference, a pay plan that's uniquely fair and very generous, and momentum and stability, but if you don't have a system in place that works, all of that doesn't matter. Most companies will have a transferable training system that they use, and that's where mentorship comes in.

Network Marketing – how to be successful

1. Choose the right sponsor.
2. Choose the right company for you
3. Realize that it will take time
4. Have a game plan
5. Read books by those who have been successful
6. The why is most important – why are you getting involved?
7. Set written goals
8. Attend company meetings and training calls
9. Study your products and learn them well
10. Share your products and opportunity at every chance you get
11. Employ a strong recruiting and prospecting system so that you don't run out of prospects
12. Enjoy the journey

Follow this and you will have success in Network Marketing!

- CBH