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Make Money With Network Marketing

 Make Money With Network Marketing First, Network Marketing or Multi-Level Marketing (MLM) is marketing (or selling) a product or service directly, or through a network of sellers or referrals to consumers. There are no middlemen. The sellers are not employees of the company but independent individuals... your regular consumers.

Make Money With Network Marketing
Make Money With Network Marketing

They may have learned about the product or service through online or offline ads, or encounters with other sellers. After buying and trying it out, they have probably been convinced not only of its benefits but that there is money to be made by "endorsing" and selling the products to others as well.

Make Money With Network Marketing

As independent sellers, they start with their immediate circle of family, friends, neighbours, and associates. They earn commission from every purchase made by those within that circle. The company that owns the products, meanwhile, provides the independent sellers with online support or offline materials such as brochures which they can give out to other potential customers.

As this network begins to grow and develop its own chain of independent sellers recruited by the original independent seller, the latter earns further commission from the sales made by these new independent sellers (now called the "downline").

With MLM, the larger the network, the greater the opportunity for the multi-level company to increase its sales. And when their business is good, it means real money for those doing network marketing for them.

Avon, the multi-billion dollar company famous for its beauty, fashion and home products, is equally known for using this strategy (also called direct selling) to reach countless women from all walks of life, all over the world. The depth and breadth of its network is not made up of sales and marketing professionals but by ordinary women who've tried and enjoyed Avon and decided to "endorse" it to others.

They are their own boss. They set their own pace. They define their working hours and use every form of encounter such as one-on-one, group gatherings and parties to push the product. And they make real money through network marketing.

Another company using direct selling is Herbalife, a nutrition, weight-management and personal care company whose products are distributed exclusively by some 2.1 million full-time and part-time distributors in 74 countries. As a member of the Direct Selling Association, the company is bound by the association's Code of Ethics which specifically bars from membership and terms as illegal those companies engaged in pyramid schemes.

MLM marketing is not a Pyramid Scheme. The main objective of Multi-Level Marketing is to sell a company's products or services. A seller's commission is paid on the products he, she, or their downline sells. Pyramiding primarily pays commissions based not on sales but on the number of recruits that an individual is able to make and the amount of purchase or "investment" that these recruits make on the product.

Here are some warning signs to watch out for:

  • 1. MLMs depend on establishing the market and creating demand for its products or services. Pyramids emphasize "recruits".
  • 2. Legit MLM businesses do not require a large amount of "investment" in whatever form such as "fee" for membership, insurance, etc. for you to become an independent seller or distributor.
  • 3. If in case you have to pay for your "initial inventory" or "personal supply", an MLM company will most certainly offer a "buy-back" of at least 80% of what you paid should you end up with unsold inventory.
  • 4. There has to be an actual product being sold to consumers catering to an actual need. On the other hand, pyramiding schemes often have products that are difficult to sell. Thus, one earns not by sales commission but by "recruiting" and signing up others to join and invest some amount of their money.

Keep in mind that your success will be fuelled by the initial people who will purchase your product or avail of the services you are selling. More often than not these customers are your very own relatives, friends and associates. Don't make the mistake of not delivering on the promises you make.

So even before attempting to hook up with a particular MLM company, do your homework! Don't rush into making a quick decision based merely on the "testimonials" of alleged sellers of the MLM you read online. Making money through network marketing may sound good, but there is work to do.

Research the company's track record and learn about their products. Ask questions and understand every detail, and every restriction that the MLM company may have when entering into an agreement with them.

Talk to other distributors of other products (maybe even competing products). Get sound advice from someone neutral like a friend who does not have a stake. Legitimate MLM companies will stand behind the quality of their product.

Once done, decide for yourself if the plan or the product satisfies your own goals and suits your talent.

Choosing your MLM Company

When choosing the MLM Company you will be working with, consider these basic points and questions:

  1. Choose a company which carries a product you are familiar with or have frequently been using. Often it will be your passion and enthusiasm in selling the product which will carry you even through the most difficult or least responsive of prospective customers.
  2. If you weren't engaged in selling the product, would you even consider buying and using the product? Why even consider if it if you don't see any value.
  3. Look at the management team of the company. Are they credible within their industry? Do they have the track record? How successful have they been and the company they represent?
  4. What is the company's financial situation? Do they have credible investors who are ready to take on the cudgels in times of financial difficulties or expansion?
  5. Being a company that relies heavily on the internet and being able to reach its network of sellers at any given time, the company would naturally have to have cutting edge technology, social media, and an extensive logistics network that could the get the products right to where it is needed, when it is needed.
  6. Who will mentor you from the company? Apart from helping you learn the ropes and the different ways in order for you to grow, you'd also want someone you know and respect as you will be working with that person as a partner and teammate over a long period of time. They must have integrity. They must be honest. They must be forward-looking.

Finally...some personal tips to Success

First and foremost, BELIEVE in your product. Aside from choosing the product and the company that best suits your objective, use the product itself. Be its own endorser.

Be prepared to "network" with people who may have a need for your product. Draw up a profile of your. potential customers (their needs and wants, product preferences and expectations, etc.) in order to understand the best approach you should use to convince them to buy your product.

Go the extra mile by learning basic marketing skills through the internet. In essence, marketing involves common sense and simply knowing how you can best get your selling proposition to your intended market.

Be prepared to work hard to make those sales. There is a lot of money to make with network marketing but you have to do your homework especially at the onset when - apart from convincing them that your product is worth their money - you need to build your reputation as a "professional" and dependable sales person.

Are you making money in network marketing or MLM? Be sure to share your comments, thoughts, ideas below.


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