Fortunes have been made in network marketing, also called multi-level marketing (MLM) by people of average education and training, yet the industry has received a bad rap over the years. Now, I can think of several reasons for this, the first being the fact that normally only the people at the top made the real money. Secondly, these types of businesses were often dubbed as “pyramid schemes” even though they were quite legitimate companies.
You see, a pyramid scheme is illegal since money is passed on from one distributor to another and there is no real product being sold, except the opportunity to “scheme” the next unsuspecting person out of their money. Many people don’t spend enough time to investigate an opportunity and so they stay away from the network marketing completely.
Another reason why the industry has gained a bad reputation is because of the large number of people who tried network marketing and failed. In the majority of cases these people were introduced to poorly managed companies (and there are many but they don’t last more than a few years) or they were introduced to the business as though it was a hobby.
In other words, the opportunity was advertised as a ‘lazy man’s way to riches’, so all they had to do, supposedly, was sign up and the law of leverage will flood their bank accounts with cash. But any serious business owner will tell you that you need planning and consistent effort to make any business profitable.
And one of those consistent activities is selling, yes selling. Most people are intimidated by that word because most people don’t like to sell. And ‘selling’ often conjure up the picture of knocking on the doors of your neighbors and family members and trying to get them to buy a product so you can stay in business. But with the advent of the internet you can forget that idea once and for all.
There is an old way of selling and growing your network marketing business and there is the new way. The old way was indeed intimidating to the average person that’s why only the ‘born sellers’ won at that game. Now you can use the strategies of internet marketing to promote your business on autopilot, in a rejection-proof way.
Such a marketing system involves using lead generation websites and an autoresponder system to qualify people even before you talk to them, and that’s if you choose to. Traditionally, network marketers would buy leads in bulk and call these leads hoping to get them into an opportunity. Even if they converted 5% of those leads this still meant that they wasted 95% of their time on tire kickers. That’s a lot of wasted resources.
Now by using internet marketing strategies you can filter that 95% out and concentrate on the precious 5%. What is revolutionary about this approach is that you can use automation to take care of the filtering process 24 hours per day, freeing up more time to build your business.
There is one caution I must add here. The majority of network marketing companies do not make their money from selling marketing systems; therefore the website they sell or give to their members is not very effective. You cannot really blame the companies because they are paying their distributors to advertise and market the product.
A traditional business would invest more in advertising and marketing because that’s where their profits go, not to paying distributors. What this means for the network marketing distributor is that he should invest in his own marketing system and website or join a team that has done so.
I have found that when I invest in my own marketing system my downline grows faster and distributors who sign up with me are more motivated to work because they have a step-by-step plan in place. Duplication of my efforts becomes easier because everything is streamlined to make marketing the product through a set plan. I’ve invested over $17,000 in such a system.
Network marketing is still a viable way to build a home business and one in which you can enter with little risk. It allows you to work at home while spending more time with your family and achieving financial freedom. Financial gurus such as Robert Kiyosaki and Donald Trump endorsed network marketing as one of the best pathway to entrepreneurial wealth. Kiyosaki once said, “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.”
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