Succeeding At Network Marketing » opportunity

Who Is Successful In Network Marketing?

Alan — Mon, 11 Oct 2010 09:29:34 +0000

Introduction

I am currently reading a book by David Nelson called Create Your Fortune In Network Marketing. I want to share a little bit of it with you as I found this very interesting as it does answer the question I posed, who is successful in network marketing?

Let me introduce him to you. David has been a full-time, network marketing professional for over 20 years. He has a successful track record as a distributor and trainer. He’s had over 100 articles published in industry trade publications. David has a total commitment to network marketing and the viability of network marketing as a home-based business enterprise for part-timers and newcomers, and not just the select few full-time recruiters. Because of this philosophy, Cutting Edge Media labeled David the “Protector of the Part-Timer.” He is also a contributing author for Network Marketing Magazine.

The Road Not Taken

In his book, David quotes from a well-known poem by Robert Frost called The Road Not Taken. David uses it to illustrate a choice that network marketers make between focusing on the product, or focusing on the opportunity.

However, I think it applies equally well to the choice that people who want to be self-employed make between traditional businesses and network marketing. Consider that as of April 2009, there were 154,731,000 in the civilian workforce. Most estimates place the number of network marketers between 6 million and 15 million.

“I shall be telling this with a sigh

Somewhere ages and ages hence:

Two roads diverged in a wood, and I—

I took the one less traveled by,

And that has made all the difference.”

Characteristics of Successful Network Marketers

“Here are some characteristics that help people become successful network marketers. They are not in order of priority or importance…

Have a white-hot desire to make money.
Like people and are genuinely interested in them.
Can empathize with others and understand their point of view.
Are willing to help others achieve their goals.
Are entrepreneurial minded.
Have a high energy level and like to be doing things.
Take initiative.
Have discipline.
Are willing to make a sacrifice for a future.
Have the skills to organize their time and money in order to accomplish goals.
Don’t allow rejection to be personal.
Are interested in personal growth and development.
Have good communication skills – listening as well as talking.
Make and keep commitments.
Work with a sense of urgency.
Have a high level of self-esteem and self-confidence.
Have a positive mental attitude and a winner’s mentality.
Are willing to learn from others.
Are good teachers, trainers, and motivators.
Are consistent and persistent in working toward goals.
Are not looking for a “free lunch.”
Are team players.
Have had success in other areas of life.
Seek an improved lifestyle.
Place a priority on time freedom
Are proactive – take initiative and responsibility to produce desired results.
Are ambitious.
Are honest, moral, and ethical.
Will follow-up and follow-through.”

How many do you have? If you don’t have them all, are you willing to go through the personal growth and development (# 12) necessary to acquire the ones you lack?

If you liked this excerpt, you can check out the whole book at Amazon.com. Leave a comment and let me hear from you.

Other Resources

If you’ve never considered network marketing as a business before, you should watch Tim Sales’ video called Brilliant Compensation where he outlines the beauty of this method of business.

I also recommend that you sign up for the “7 Days, 7 Insider Secrets” email newsletter at www.AlansMLMTips.com, for some important pointers on how to pick a company to work with.

Quote

“Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination are omnipotent.” – Calvin Coolidge

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Alan — Tue, 14 Sep 2010 04:13:19 +0000

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If It’s Network Marketing,

Alan — Mon, 09 Aug 2010 08:17:12 +0000

Why Aren’t We Taught How To Market?

If you’ve read some books on network marketing, you will probably have noticed that very few, if any, of the books out there mention what marketing is. Does anyone else find this strange?

We work in an industry called network marketing, or multi-level marketing and nowhere within the industry does anyone explain what marketing really is. I have read a couple blogs where other people have noticed this lack, but it’s actually pretty humorous that this seems to have gone undetected for so long.

Kind of like a dog groomer not knowing what grooming is (caring for an animal’s cleanliness and appearance). Or an airplane pilot not knowing what pilot means.

Seems sort of silly when you apply it to other industries, doesn’t it?

What Is Marketing

Let’s start with the easy, my Encarta Dictionary says marketing is “the business activity of presenting products or services in such a way as to make them desirable.”

The Oxford Dictionary says “the action or business of promoting and selling products or services , including market research and advertising.”

From BusinessDictionary.com we get “As a practice, it consists in coordination of four elements called 4P’s: (1) identification, selection, and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer’s place, and (4) development and implementation of a promotional strategy.”

Now, if you look over those four elements, in network marketing we are left with number four as the only area we normally have any control over.

The purpose of marketing is to create a want or a desire and to sell something to the people in whom you’ve created that want or desire.

So What Is Sales

This is another oddity that I’ve noticed in network marketing, we’re selling a product or service, but we’re not supposed to say that’s what we’re doing, we call it sharing or telling a story.

So let’s define sales and selling. Sales is the exchange of goods or services for an agreed-upon amount of money. That seems safe enough, I have a car, you want the car, offer me $2000 for it and I agree. You get the car, I get the $2000.

Okay, selling; the process where the salesperson ascertains, activates, and satisfies the needs or wants of the buyer to the mutual, continuous benefit of both buyer and seller.

Or, as I like to put it, selling is a conversation designed to help the buyer acquire what he needs or wants.

I think the problem arises, and where most people’s dislike of sales as an occupation comes from, is most of us have experienced the salesperson who did not have the intention to help, but only wanted your money, and would do pretty much anything to get it.

I used to hate sales, with a passion, but since I found and understood these definitions, I actually like selling. It’s enjoyable helping people acquire what they need.

What Does This Mean?

Once you’ve joined your company, what do you do? You have to market yourself and your company/product/service/opportunity.

The almost universal method that we are all taught in network marketing is to make a list of friends, family and acquaintances, the longer the better. Then learn how to approach these people and present your company/product/service/ opportunity. I don’t know that this is the best method of marketing, it certainly is easy enough to learn and practice will improve your skill at it.

You can apply the three-foot rule and talk to anyone within three feet of you. This requires developing a speedy method of communicating what you’re all about to a stranger or good skills at developing conversations with strangers.

You can hand out business cards or flyers to people in shopping malls or grocery stores. You can post flyers, you can put ads on Craig’s List, start a blog, there are probably hundreds of methods of getting your name in front of other people.

A whole new world has opened up in the form of social media, Facebook, Twitter, Linked.com, MySpace, etc. These are valuable ways to market yourself and your company very cheaply.

The whole point is to get your information in front of someone who’s interested so that they can act on it.

The best way, in my humble opinion, is to find or pick a certain type of people, or a certain occupation, or people in a certain location, find out by asking people what they think is good, bad or indifferent about green apples (or whatever product/service/opportunity you’re asking about). Ask enough people and a pattern will emerge. Use that pattern to your benefit and grow your business.

Marketing Is Valuable

People spend years learning marketing and business colleges teach it for one reason, it’s good business. Network marketing companies depend on you for the majority of their marketing and they pay very nicely if you figure it out. Are you interested enough to figure it out?

One of my favorite blogs for marketing is the RealWebMarketing Blog, written by John Eberhard. He writes about once a week on topics of great relevance to what we are doing as network marketers. I urge you to check it out and add more knowledge about marketing to your arsenal along with the motivational and inspirational to keep you going and growing.

Quote

If you’re attacking your market from multiple positions and your competition isn’t, you have all the advantage and it will show up in your increased success and income. – Jay Abraham

Happy 4th of July!

Alan — Mon, 05 Jul 2010 07:16:26 +0000

Celebrate The Reason For The Day

I want to wish all my friends the best Independence Day ever. Before I move on to the topic of network marketing and working from home, I want to remind everyone why we celebrate this day, so bear with me for a small demonstration of my love for the good old USA.

The Declaration of Independence

“When, in the course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness. …”

Thus began the grand experiment in self governance that is the United States of America.

Begin Your Own Grand Experiment

Network marketing can provide you your own personal declaration of independence. Lest you jump into network marketing thinking you’re going to get wealthy overnight, let me remind you that there was a long road to hoe between the Declaration of Independence and actual independence. This little thing called the Revolutionary War, or the War for Independence, came before actual independence, and so did the intra-colony squabbling over what type of government we should have. There were many heartbreaks, heartaches, losses and setbacks between the Declaration and the reality of Independence.

Do you think you’re going to go from where ever you are right now to where you want to be overnight? The odds are against you. But, are you willing to suffer through your own war for independence? Are you willing to suffer the slings and arrows of loved ones who don’t believe in you? Are you willing to search for the right mentors who will help you learn what you need to learn to achieve your independence?

Do you know what independence means to you? What type of freedom are you looking for? The Declaration was a statement of where we wanted to go as a country. Have you stated where you want to go with your independence? What do you want independence from? Independence from the 9 to 5? Independence from having a boss? Independence from a job you hate? From a job that you think makes no difference in the larger scope of things?

Are you willing to fight for your independence? Are you willing to work and learn and fail and work and learn and work some more to make your dreams come true?

Your Why

You may have noticed from all my questions in the previous section that being willing to start on your path to independence and success, and stick with it till you reach it has a lot to do with your why. Why do you want what you want? Is it strong enough to keep you motivated through whatever self-imposed barriers you’ve created or the doubts of others, or the rejections you might get. To help you figure out your why and locate what will drive you to success, see my earlier blog “Why, Oh Why.”

Once I Know Why, What’s Next?

Once you know why you’re going into business, you have to figure out what you’re going to do and who you’re going to do it with. In other words what home business or opportunity are you going to go to work with. You should find a company to work with or a business to do that aligns well with your why for doing it and thus increase or maximize your chances for success.

To get assistance on this, go now and sign up for the free newsletter 7 Days – 7 Insider Secrets newsletter. It gives you some tips on things to look for and think about before jumping in with a company on your road to independence. Good luck and may the force be with you!

Quote

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.” – from A Return to Love, by Marianne Williamson ©1992

Pyramid, Scam, or For Real

Alan — Mon, 31 May 2010 08:50:33 +0000

What Are They and What’s The Difference?

I sometimes wonder why there is any confusion on these terms as they apply to working from home, but then other times I think it’s just par for the course. There seem to be people on this planet who enjoy denigrating, confusing and muddling up the issues. So, to piss off those types of people (who like to denigrate, confuse and muddle up things), I am going to inject some clarity into the subject. All right?

I guess being the unserious type; I should inject my humorous look at it first. The difference is in who gets screwed: with a scam everyone gets screwed (except the guy who thought it up); with a pyramid, the latecomers get screwed; and with a real business or opportunity – no one gets screwed.

Definitions

Scam – A fraudulent business scheme; a swindle. An illegal plan for making money. A scheme for making money by dishonest means.

Pyramid – An illegal scheme in which participants give money or other valuables in exchange for the opportunity to receive payment for recruiting others to participate in the scheme. A fraudulent money-making scheme in which people are recruited to make payments to others above them in a hierarchy while expecting to receive payments from people recruited below them. Eventually the number of new recruits fails to sustain the payment structure, the scheme collapses with most people losing the money they paid in. From the Federal Trade Commission – “Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure.” – http://www.ftc.gov/speeches/other/dvimf16.shtm, paragraph 4

Network marketing – Most definitions of network marketing get way too complicated; here’s my favorite simple definition: “Any method of marketing that allows independent sales representatives to recruit other sales representatives and to draw commissions from the sales of those recruits.” – Wave 3 The New Era in Network Marketing by Richard Poe ©1995 “Network marketing is a form of distribution of products and services that, through word of mouth promotion, uses the power of duplication of effort.” – The New Entrepreneurs by Rene Reid Yarnell ©1999 “Some people confuse pyramid … schemes with legitimate multilevel marketing. Multilevel marketing programs are known as MLM’s (or network marketing) and unlike pyramid … schemes, MLM’s have a real product to sell. More importantly, MLM’s actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. MLM’s may pay commissions to a long string of distributors, but these commission(s) are paid for real retail sales, not for new recruits.” – http://www.ftc.gov/speeches/other/dvimf16.shtm, paragraph 7

Another way to define it is who gets paid; in a scam, the originator gets paid; in a pyramid, the early birds get paid; in network marketing, anyone who makes a sale gets paid.

Examples of Scams

If you get an email from Nigeria wanting you to send money to prove you’re worthy of helping them transfer money into the U.S.; delete immediately, it’s a scam.

If you get a check from anywhere that you weren’t expecting, and when you call to verify, they ask you to send them the cash in exchange for the check; call the authorities – it’s illegal and is called bank fraud & mail fraud; and yes it’s a scam.

Examples of Pyramid Schemes

If there is a one-time fee to buy into the program or “business,” and there are no ongoing product sales, it’s most likely a pyramid. If all recruiting stopped today, where would the commission payments come from?

If most of the money comes from recruiting someone and the actual residual income comes from a tiny percentage of an ongoing purchase of a product or service, that is probably a pyramid even though it is well disguised.

If the ad says “One-time fee, no buying, no selling, no recruiting, we build your organization for you.” RUN quick like a bunny! If they don’t need you to sell or recruit or buy anything, why do they need you? (Hint – it’s your money) Your money/cash/commissions are only coming from the people that join after you. It is a pyramid.

If the start-up fee is your cost to purchase a report, and you make money by selling others the report to get them started; look out Martha, it’s a pyramid.

Examples of Network Marketing

Okay, I’ll admit I’m only going to pick obvious companies here that have stood the test of time. The whole point of this series of blogs is to teach you how to pick a good and worthwhile company that you can use as your vehicle to create that stable, long-term, leveraged, residual income.

Disclaimer: I am not recommending any of these companies as your home business opportunity, if you are looking at joining any of them, it is up to you to research them and do your due diligence and figure out if it’s the right company for you.

Amway, Herbalife, Mannatech, NuSkin, Pre-Paid Legal, Shaklee, Visalus, Xango are all network marketing companies.

Mary Kay Cosmetics and Melaleuca are not network marketing companies, but if they were, I would put them on the list too.

If you want to be amused, check out how many company names are on a reasonably current list of network marketing companies at: http://www.mlmconsultant.com/mlm_company_list_directory.htm

Now That You Know The Difference

You have learned one more of the basics, for more info, go to www.AlansMLMTips.com and sign up for the “7 Days, 7 Insider Secrets” email newsletter. (No money down, no obligation, it’s freeeeeeee…)

Quote

“If I had to do it all over again, rather than build an old style type of business, I would have started building a network marketing business.” – Robert T. Kiyosaki, entrepreneur and author

What Else Do I Need To Know?

Alan — Mon, 24 May 2010 06:31:38 +0000

Before We Move On

Let’s recap. So far we’ve looked at the company track record, financial strength and the caliber of the management and how these things interact and what they mean to you as the prospective entrepreneur working to build your home based business with that company.

We understand what residual income is and why we want it. And the relationship of the three factors in the first paragraph to creating a reliable, long-term, residual income.

So, let’s move on.

Leverage

If you’ve ever been to an opportunity meeting, or a home party, or a business presentation at your local Starbucks, you’ve probably heard the word “leverage” mentioned. You may have a good idea what was meant, or you may not have a clue, or maybe you’re wondering why you have to have a crowbar (a type of lever) in network marketing. So, let’s define it.

One meaning is “the mechanical advantage gained by using a lever.” If you’ve ever pried the lid off a can of paint, you’ve used leverage, the screwdriver was the lever, it’s use was leverage enabling you to open the paint can.

Let’s narrow this down and find a more appropriate definition for business usage, “to increase, enhance, or optimize something.” So, any tool that you use in a business would be a type of leverage. A computer would be a type of leverage, you use the computer to enhance your ability to keep track of sales and expenditures. A fax machine is a type of leverage by increasing your ability to send and receive documents so that you don’t have to wait for the mail.

Leverage In Network Marketing

Okay, there’s a general idea of leverage, now let’s apply it to network marketing: “Every successful person or business takes advantage of leverage. There’s only 24 hours in a day! And no matter how talented you are or how much you get paid per hour, if you don’t take advantage of leverage you’re limited by the number of hours in a day. By learning to leverage your time, you can also benefit from a percentage of other people’s efforts, and dramatically increase your income and freedom. …

“The unique and wonderful thing about the network marketing business is that everyone has the same opportunity to become the owner of their own business with a fraction of the investment of time and money of a traditional business. Instead of worrying about training people to become their competitors, in network marketing the people at the top have a vested interest in helping others on their team to succeed.” – excerpted from http://www.mlm-company.net/leverage-income.html

Here’s another quote that I found very enlightening from an Australian chap named Nic Brits. The site that I found this quote at no longer exists, but it’s still a good example of how it works: “True leverage is turning small numbers in to large numbers.” In an earlier post, someone had asked how to have 10,000 people in your downline. Nic continues, “Teach 5 people to each teach 5 people who in turn each teach 5 who in turn each teach 5 people who in turn each teach 5 people each to another 5 people and at this stage you will have 15,625 people in your downline team. … starting with a small number you create a large number by using leverage.”

You may have heard this quote before: “I’d rather have 1% of 100 people’s efforts than 100% of my own.” – John Paul Getty

What Does That Have To Do With Residual Income?

If you recall in my blog on residual income, we had the following definition: “RESIDUAL INCOME is income from efforts which continue to generate revenue over time without requiring any additional effort.”

If you put those first five people in place and you train them correctly and they find five people, are you doing all the work? Is leverage beginning to work for you? Might you start seeing leveraged income turn into residual income?

Summary

Leverage increases your ability to enhance your income. What we’re looking for is reliable, long-term, leveraged, residual income. The company itself should provide reliable and long-term. You provide the leverage by how well you build and train your organization. Residual comes about from the longevity of the company and your ability to provide what the company needs – product sales.

Want To Know More?

For more info, go to www.AlansMLMTips.com and sign up for the “7 Days, 7 Insider Secrets” email newsletter. Did I mention it’s free?

Quote

“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.” – Mark Twain