What Is The True Cost Of Your Network Marketing Opportunity?

What Is The True Cost Of Your Network Marketing Opportunity?

OK, you've got great products, a red hot compensation plan, and you love your sponsor, who at this point, you believe would do anything to help you succeed.  And even though you are positive everyone and their brother would want to get involved because, in your mind, it's a "no brainer, nobody shows any interest.  Oh, you did have one guy that filled out the prospect information on your company sponsored website, but the phone number he give you is no longer in service, and your emails to him go unanswered.  What do you do?

Well, common sense tells you that you should go to your sponsor and ask her that same question.  Right?  And your sponsor says, "Just keep promoting, it's just a numbers game.  The more people that view your website, the more liklihood that you will start to find some good, interested people."  In a nutshell, is that what most people would hear from their sponsor with that type of question?

But you are not a quitter so you are going to contine to drive people to your website because if your sponsor can do it, then so can you.  But you are running out of people to talk to so you decide you are going to advertise.  You went to your company's convention a few weeks back and heard some guy talk about Pay Per Click advertising and how he used it to build a downline of several thousand people when he got started.  So you check into that.

You don't have a big budget for advertising, but you can afford some money each month.  So you get set up on a popular PPC advertising program, and set your daily limit at $10.00 for a few days to see how it goes.  You get some click throughs but no signups and you run hit your limit on a couple of days. 

So, you up your daily limit to $20 and you get more click throughs and low and behold, you get one signup!  Now, you believe you are on the right track so you continue to use PPC advertising but soon realize this is costing you several hundred dollars a month.  There is no way you can continue to spend this kind of money plus, in the back of your mind, you wonder if your downline will ever be able to do the same thing. 

Of course, one thing that guy didn't tell you at your convention was that he had a few network marketing friends who brought in some of their friends and gave him an instant downline.  So, he started making some decent money right away and before he knew it, he was spending $5,000 a month on PPC a little over 5 years ago.  That sponsored dozens more each month and he was off and running to earn trips, bonuses, and walk across the stage as a triple diamond distributor a year later and give a presentation on how he did it in such a short time frame.

It's What The Gurus Don't Tell You That Matters

Look, I probably don't have to tell you that everything you see, read, or hear is not what it appears to be.  But network marketing opportunities are doubly bad.  The  reason is because there are literally a million ways to build a team and most of them are dependent on your network of people BEFORE you ever signed on the dotted line.  So, if you are new to MLM, you probably didn't have a network of experienced networkers ready to pounce on the next pre-launch where they could make their millions and then move on.  So make a note of what I am going to tell you.  Write it down and don't forget it.  WHAT WORKED JUST A FEW SHORT YEARS AGO PROBABLY WON'T WORK TODAY!

It's true.  The internet is changing, Network marketing is changing.  Your target market is changing. And people are changing.  Until you realize that, and are able to adapt with the changes, you are going to flounder, always being a year late and several thousand dollars short.  Believe me, there is a better way.

Stop Putting The Cart Before The Horse

If you are trying to recruit people into your network marketing opportunity directly, chances are very good you will not succeed.  Again, people have changed and are skittish about any opportunity right now.  Too many of them have been burned so the internet, being as impersonal as it is, just makes it even harder because there is no relationship established.  That is why you will find program after program being sold on "How To Use Social Media To Build Your Business".  At least there is some relationship between you and your "friends" on social networks.  Unfortunately, the networks themselves frown on blatent advertising(unless you pay for it) so it makes it difficult to actually use the social networks to find more than a person or two.

So, here is the answer in this day and age.  Build a team of people from scratch by offering them a really inexpensive way to start making money in network marketing and not have to shell out hundreds of dollars for products a month.  Use less than that for advertising this paradigm shift and see how many takers you have.  I have grown a downline of over 850 in 8 weeks.  There definitely is much more interest in doing it my way than the outdated way.  And then when your team reaches a pre-determined number, you can start making very good money in any program you choose.  Even your current one if you wanted to.  But you would have a team comparable to the guy who spoke at your convention on PPC without spending thousands of dollars like he did, and without having alot of network marketing friends.

Here is the link to my team site.  Just email me from the site if you would like to see how we do what we do.  http://TeamBeaman.com

If you continue to do what you've always done, you'll continue to get what you've always got.

Marketing Today Requires A Different Mindset

Marketing-The Key To Your Success

It doesn't matter whether it is offline or online, if you can effectively market your network marketing opportunity, you will have success.  It is marketing, getting the word out to large numbers of people usually as soon as possible, that will make or break a new distributor.  Why ASAP?  Because when people are spending decent money every month, most people are not going to be able to survive even 6 months without having some money coming in to offset the cost of products and maybe even some advertising if that is part of the marketing plan.  So, how does your upline suggest you market your opportunity?  Let's take a look at some common marketing methods.

Some Common (And Not So Common) Marketing Methods Network Marketers Routinely Use

1. Make a list of everybody you know.  Use a "memory jogger" to really pad your list.
2. Home meetings to "show the plan" or if close by a successful upline, use hotel meetings.
3. 3 Way Calls, the old standby of using 3rd party expertise when face-to-face isn't feasible.
4. Hand out multi-color brochures, or better yet, CD's and then follow up, follow up, follow up.
5. Use drop cards with a catchy look and phrase and "drop" them everywhere you go.  You never know when an interested person may pick one up.
6. Put flyers on door knobs or cars in mall parking lots telling them to call a "sissle number" for more information.
7. Buy leads and then call them one by one, maybe even invest in automated software to make those calls rapidly.
8. Buy leads and then pay to have them "blasted" with emails.  With the best response rate, you would need millions to maybe get a few responses.
9. Steering conversations at parties or at the mall with complete strangers to "what do you do for a living" type conversations.
10. Asking friends if they might know of somebody who would be interested in an extra few thousand dollars a month.  And then suprisingly, your friend says, "Well, I am!"
11. Traffic exchanges and safelists.  Nothing like "preaching to the choir" since everyone on those lists has the same intention, find interested prospectsfor their own opportunity.  But there aren't any, at least that are truly serious.
12. Place ads in local papers or if you have alot of money lying around, in USA Today.
13. Place ads on internet advertising sites like Craigslist or Backpage.
14. Start a blog by writing posts daily and submit articles often to article directories and visit high authority sites to post backlinks to your blog and participate on forums to get your blog URL out there and...wheww!!
15. Spend some money on a one-on-one coach who can work directly with you to "ensure" your success.
16. Find a mentor who will take you under his/her wing and "show you the ropes" to make sure you don't have to "take the arrows" all yourself.
17. Buy leads and do a "Fax Blast".
18. Lead with the products.  If you have great products, surely you can "sell" people to try your $50 vitamins even though they've never taken vitamins before.
19. Give people your products so they get "hooked" and will become a repeat customer and buy them from you after their free supply runs out.  Of course, that can be very expensive.
20. Use social media the right way. (No advertising, just "subtly" mention that you have a business opportunity and maybe they will ask you about it).  Or get your own "company page" to drive traffic to but unfortunately only others in your business already join your group.
21. Buy mobile ads on smart phones.  After all, that is the current trend, right?  Well, I tried that and was told by the largest mobile ad company in the U.S. that "we don't have any demand for network marketing ads".  End of story.

I could go on, but you get the picture.  There are 21 different marketing methods there but still over 90% of people who sign up today using those methods will quit within one year.  Why is that?  I'll tell you why.

Network Marketing Today Requires A Different Mindset

If you are trying to "sell" your MLM opportunity today, you will die a slow death.  That is not hyperbole, that is fact.  You'll read some posts from "gurus" about the future of network marketing being very bright because of a bad economy getting worse.  And that may be correct. 

But you will not be getting many of those "down and out" people because most will already have lost their jobs and they can't afford to jump into a business that is going to cost them money on a monthly basis.  THEY DON'T HAVE ANY MONEY.  Most of them had been told for years by one or two of their friends (see above) that they needed to start looking at other ways to make money but they didn't heed the warnings.  Now, it is too late.

The change in mindset that is needed is to realize that you need to build a "team" before your network marketing company starts charging them for products.  And you can't have a monthly fee to build that team.  If you need to, you can charge a one-time, lifetime administrative fee of say, $25 and then take as long as needed to build the team.  Obviously, faster is better so if any money is in the budget, paid advertising will work because we have changed the mindset of "selling an opportunity" to "building a team first" and then choosing an opportunity after a good income is assured.  If no money is in the budget, then there should be free programs available so that anyone can take advantage by earning their $25 administrative fee.

It is nothing more than putting the horse before the cart, the way it should be than the other way around.  If you would like to take a look at how a specific mindset change could work, which by the way, has over 4 million members to date, click here.

 

Multi Level Marketing - Is There Anything Better?

Multi Level Marketing - Is There Anything Better?

Much has been written about the advantages of multi level marketing over other ways to make money long before the internet came along.  Advantages such as low start up costs, minimal operating costs, ability to create wealth far beyond what a single brick and morter business could produce, no employees, no bank loans, no franchise fees, and on and on.

But since the proliferation of the internet some 20 years ago, many other types of money making businesses have appeared.  And alot of money has been made in many of them over the years.  But the question remains, Is There Any Better Way To Make Money Than Multi Level Marketing?  Let's take a look.

Affiliate Marketing Versus Multi Level Marketing

Affiliate marketing is probably the largest non multi level marketing business model in terms of popularity and money made.  Affiliate marketers don't have to create, sell, use, or even know anything about the products they sell.  They just have to be able to market.  And as the internet has grown, so has the number of people willing to spend money on digital products which promise weight loss, pet training, muscle building, making money, and just about anything people are interested in.  In other words if you developed internet marketing skills, you could make a decent living and sometimes become very wealthy.

But the downsides of affiliate marketing are many. 

First, the money made is usually a one time deal.  Once you sell a product, you could go hungry until you sell another one.  With multi level marketing, a real draw has been the residual income.  Do the work once, get paid for life.  With affiliate marketing, you must work most every day or you don't get paid.  Now don't get me wrong.  With technology, you can automate much of your marketing so you don't have to be in front of your computer all day.  But the bottom line is if you don't make a sale, that day, you don't get paid.

Second, the internet and companies on the internet are constantly changing.  What Google will accept today in the way of pay per click advertising, they may completely change their direction tomorrow.  And that is exactly what happened not long ago when many affiliate marketers, who depended on PPC advertising were suddenly stopped in their tracks.  And their income stopped as well.  You certainly don't want to depend on any one person or organization for your likelihood.  It could spell disaster.

And third, affiliate marketers are usually paid online through various online payers.  When they have their problems or suddenly change how they handle your money, you could go a period of time without being able to access the money you have earned.  This, too, has happened when PayPal decided to withhold funds when their policy changed.

Sell Your Own Products

People can be very creative when there is a great monetary incentive or when they want to eat.  Instead of marketing other people's products, you could create your own products, digital or otherwise, and have affiliate marketers sell them for you.  Typically, you would make 50% of the sale when sold by affiliates, or you could market them all by your lonesome and make 100%.  Either way, it is an alternative to affiliate marketing and multi level marketing.

Sell On Ebay

An entirely new and different business model developed when people learned how to sell on eBay.  I'm not talking about selling things you have lying around your house.  I'm talking about creating agreements with companies who make hard and soft goods to drop ship them to customers that you, as an eBay seller have marketed to on eBay as well as your own eBay store.  This is the epitomy of being a marketer when you find the products to sell and then work with the companies to set up the distribution channels to get the products to them.  All of this while you are sitting in the comfort of your own home and working whatever hours you desire.  The advantage you have is the millions of customers who use eBay on a daily basis.  You don't have to go far to find customers for your products.

Membership Sites

Along the same lines as people that create originals to sell are the people who develop websites that offer information or services and charge a membership fee to access it.  This can be a form of residual income since monthly membership fees are the norm and as long as someone sees value in what they are receiving, they may stay as members for a very long time maintaining your income from those people indefinitely.  This can be an attractive option once you have the website and its intricasies set up for such a business.

Conclusion

There are other business models that have appeared online over the past couple of decades, some worthy of pursuing, others very short lived.  And the advantages of some of them may well prove the test of time.  However, multi level marketing HAS stood the test of time and, in fact, has grown to such a point that some would say it is a saturation of the market for people looking at ways to make money.  But as is the case in free market societies, the strong will survive and the weak will die but may surface in a new, similar type business or a completely different business model.  But the bottom line is: if you need to make money outside of a job, take a look at multi level marketing.  Pick a strong, knowledgeable upline in a company that has been around for at least 2 years.

If you are interested in building a network marketing business in a completely different way than what you find today, check out my blog post: A Different Way To Build A Network Marketing Business

Do MLM Blogs Increase Signups?

Do MLM Blogs Increase Signups?

An increasing number of network marketers have seemed to be getting into the blogging arena, specifically writing MLM blogs to increase traffic to the company website through links in the blog posts and consequently to increase signups in their MLM business opportunity.

But here are 10 rhetorical questions I would like to pose to individuals who have an MLM blog and those who are contemplating developing one:

1. Do MLM blogs increase visitors to individual MLM company websites?
2. What is the target market that MLM blogs cater to?
3. Is the time spent writing posts for the MLM blogs a worthy use of time or could it be better spent actually building the MLM business?
4. Are MLM blogs just "preaching to the choir" or do people who know nothing about MLM actually benefiting from all of the content being written?
5. Are MLM blogs being promoted properly by writing articles, getting backlinks, using proper keyword density, using metatags, and having proper permalink setup and all the other things search engines look for?
6. Would you consider the majority of MLM blogs of having good, solid content that actually can make a difference in someone's research, or are the majority of them just "cluttering up" the internet?
7. Are MLM blogs the primary way that MLM company websites are now being promoted instead of sending prospects there directly?
8. How many people with MLM blogs have a self-imposed title on their blog, such as "network marketing expert" or "home business coach"?
9. Do original articles submitted to popular article directories have a better chance of getting on the first page of search engines than individual MLM blog posts?
10. Are MLM businesses being built the traditional way any more with home or hotel meetings, or are they a thing of the past with MLM blogs taking their place?

These are just a few of the questions that have come to mind as I see the proliferation of blogs with MLM type content all over the internet.  At some point, blogs may be passe' and a new form of a public online communication will arise, but in the meantime, it looks like the MLM blog is here to stay.

Guarantee Your Network Marketing Success

Guarantee Your Network Marketing Success

Someone you just introduced to your network marketing business opportunity gives you this ultimatum.  "OK, I've got $150 to spend now, up to $100 a month and no more, not even for tax or shipping, just a crisp $100 bill every 30 days. What are my chances of building a large, vibrant, active network marketing business in one year so that I am making a consistant $10,000 a month 12 months from now?"

What would be your answer?  Zero %?  10%? or maybe even 20%?

What if I told you I would guarantee him/her that the chances of that happening were 97.4% if he/she followed my system to the letter?

And you say, that's crazy!  Nobody can guarantee anybody anything when it comes to network marketing. There are too many variables.  How many network marketing superstars do you know because if you don't know any who would join you, you could never make that happen.

And I say, "If you follow my system EXACTLY, you will be using a team building platform whereby EVERYBODY will be contributing to your success.  It is a demonstration of teamwork the likes of which you have never known.  When all is said and done, 15,000+ ACTIVE networkers will be on your team in one year."  Any takers?

I can explain to you my system in 5 minutes.  There are no websites required to be viewed (unless you want to), no sales pitches, no leads to cold call, no friends or family to see, no more money out of pocket will be spent, ever.  A total of $1350 over a year to make $10,000 a month RESIDUAL income.  Are you in?

Oh, and by the way.  Your time spent on this will be less than one hour per day, also guaranteed.

The sooner you contact me, the sooner you lock in your position and the sooner you will receive results you can pocket.

And, just in case you are wondering if you could lose your $1350, you will not be giving your money to me.  You will be using it to build a loyal, lifelong team using diversified advertising that works.  If at any time, you are not seeing rapid team growth, you can walk away.  Of course, there is a possibility that if you choose not to follow my system that you would lose money.  So, if you are not coachable, don't waste our team's time and your money.

Email me at mysystem@teambeaman.com with a phone number and a good time to call and we will go from there.

A Different Way To Build A Multilevel Marketing Business

A Different Way To Build A Multilevel Marketing Business

I'm sure you have heard the expression, "Don't Put The Cart Before The Horse".  And I'm also sure the expression came from the days when the only mode of transportation for moving things from one place to the other was a horse pulling a cart.  So you can understand that putting the cart before the horse was not a way you were going to haul anything.  Well, it's also what 99% of Multilevel Marketing Business Owners do as well.  Let me explain.

Putting The Cart Before The Horse In A Multilevel Marketing Business

When you sign on the application form to begin your multilevel marketing business, you probably also are heavily encouraged or even required to begin your monthly autoship at the same time.  This is usually required before your sponsor or upline will begin working with you since it is the way that your entire upline gets paid.  So, right out of the chute, you have an initial expense for the "business kit" as well as for your initial products, which can be several hundred dollars total.  And, to top it off, you can expect usually a $100 to $200 bill for products in 28 to 30 days and every month thereafter.

This expense is usually what kills a new multilevel marketing business owner.

Let me ask you, if you could build your multilevel marketing business team FIRST, before you ever had to pay for your initial product order and any subsequent product orders, would that allow many, many more distributors to stay in the business and consequently, produce a bigger and more productive downline?  And, once you had a loyal, dedicated team, would you be more than happy to begin your product purchase and realize a sizable income almost overnight? 

Well, this is not a fantasy.  This is a cutting-edge, adapt with the changing industry, way to build a multilevel marketing business in today's world.  Read further, and you just might become a believer.

How To Put The Horse Back Before The Cart In Your Multilevel Marketing Business

Here is letter taken from another website that I developed and currently market, http://TeamBeaman.com   It is a concept that is growing by leaps and bounds and currently has several hundred members.  See if it doesn't resinate with you.


From the Desk Of -
Dennis Beaman

Greetings Future Teammates,

Let me introduce myself. My name is Dennis Beaman and I am a veteran online marketer. But don't let that fool you. I am not an self-proclaimed expert nor am I a self-made online millionaire. I am just an average guy who has seen and experienced first hand how ruthless, frustrating, and cruel the online money making world can be. I've lost more money online than some of you have probably made in 6 months or maybe even a year!

So, I decided to change what the "experts" told me to do, and do what is clearly aligned with what I believe. What you are about to read is revolutionary to say the least, but I believe if you follow your core beliefs that emphasize helping other people, you cannot fail.

I used to coach football, both high school and college for nearly 20 years. I was always preaching that T.E.A.M. stood for: Together Everyone Achieves More. And when my teams bought into that concept, and became totally unselfish, we blew the doors off the competition.

Our team is just an extension of that concept. And anyone that buys into our mission and joins us will find that their outlook on business, on marketing, and on life will improve immensely. Take a 14 day test drive by clicking on the blue banner and we'll prove it to you!

Let me say upfront that our team does not dwell on the money they make. Because once you focus on how much money you can make, you will never achieve the abundance you deserve. It is about helping people. And I'm sure you have heard many times the Zig Zigler quote, "If you help enough people get what they want, you will get what you want." Truer words were never spoken but on this team, we take it to heart.

At Team Beaman we use the leverage of hundreds of thousands of ACTIVE team members to increase everyone's bank account, but it is by being a teammate, mentor, and friend to those you can help that really makes our team unlike anything you will have ever been involved with. But be forewarned. Honesty is a true character trait with us and we will tell you "like it is", so no whining will be allowed. It is probably a carryover from my football coaching days:)

So, what exactly is it that we do?

Our business is Team Building, but not by using those so-called team building exercises you find at self-improvement seminars. We focus on building real, large, lifelong, very active teams that are ready to tackle the world and allow everyone on the team to prosper, even if you are not a recruiting superstar. Once that team reaches a pre-determined level, the team then systematically joins one or more elite online programs as a team, increases their incomes almost overnight, and continue to build, coach, and mentor their teammates so that new teammates get the same benefit.

And we never ever enter "fly-by'night" programs. We always look for solid opportunities that have been around for at least 2 years, which in turn produce income that will sustain each of us monetarilly through the rest of our lives and even our grandchildren's lives.

How much does it cost to join? Let's just say that, as a team, we take care of our teammates. Our total team system outley is $25 for a lifetime membership. And if $25 is an issue, we will even show you how that administrative fee can be waived. We don't want money to ever be a reason that someone who is sincere and maybe desperate can't join us.

This team is for anyone that has ever been beat down but has the courage to get back up and fight. Fighting to help others even though your circumstances are less than ideal is a very worthy cause and you will be rewarded. That is the selflessness that has made this team unique. There are alot of people out there that will work hard if given direction, and we want all of those people to join us.

In building our team, we have combined the best of two worlds - A recruiting platform which takes rapid team building to a whole new level using techniques proven to find over 4 million online referrals in the last 8 years, and the "how to" of building and sustaining a loyal, dedicated team that will last a lifetime.

The team building aspect of our team utilizes an ingenious method of getting everyone involved in marketing efforts, called "enforced team support" through a step by step blueprint called the "Success Wizard". It is the main core of our referring platform. And if results are slow in coming for anyone, the "team" pitches in to help, provided consistant team activities are being met. There are always at least TWO people, besides yourself, that have a vested interest in seeing you get 5 ACTIVE referrals to start, even to the point of actually giving them to you if need be, provided you demonstrate a work ethic that will return the favor to another less fortunate member! That is why our team is so successful. Everyone succeeds or no one succeeds. To see this phenomenal program, click on the blue Referral banner below and take a tour.

The 2nd aspect of building a dynamic, long lasting team is fully explained in the free, 90 page ebook you will download immediately after clicking on the Referral banner and giving some information. This ebook communicates how to build a lifelong team that will become teammates for life. You will be able to see that our business is a "people" business, not a product business nor a company business. That is why we don't put the cart before the horse like 98% of people wanting to make money online by looking at the product, the company, and a whole host of things that are less important than YOU! YOU are the reason people will join you, not company, products, or even the compensation plan. This concept will forever change the way you view any business, because all businesses need customers. And your teammates ARE your customers and should be treated as such because they are at the heart of a lasting, profitable business.

If any of the above makes sense to you, take a tour of our referring platform and then click on the red banner to read the "secrets" to building a team for life! Our system really is the first true team approach to making money! Take a FREE tour and see what being part of a REAL team is like! 

Sincerely,

Dennis Beaman    

My Top Network Marketing Companies

My Top Network Marketing Companies

Many lists of the top network marketing companies have been compiled and each one is different.
There are top network marketing companies of each year.  There are top network marketing companies over the last 10 years.  And there are even top network marketing companies based only on Alexa rankings, or the most popular MLM websites if you will.

All of the above lists have some merit, but it can be very confusing when you are actually looking for a network marketing company because you want to start working toward financial independence in a reasonable amount of time, you don't want to pay a large startup cost, and you don't want to lose any more money online.  So if you see a company over and over again on several of the lists you are researching, it probably is a good company to narrow down YOUR OWN list to.

My list is totally subjective.  Having been in the network marketing business for about 20 years, and having had contact with many, many distributors of many, many companies over the years, I have a good feel for what are good companies based on the reports that I receive.  I also have been a distributor myself in a few of them so I have first hand knowledge as well.  They are in no particular order and I'm sure alot of people will disagree with the list since their company is not listed. 

The other criteria I used to determine which companies made the list of My Top Network Marketing Companies is the same criteria I used to determine how to evaluate network marketing opportunities in a recent blog post. 

Finally, as I have mentioned in another blog post, you can have the best company, the best products, the best compensation plan, the best marketing system, and the best management team, but the most important selection criteria is your sponsor and upline.  People decide whether to join people long before they decide to join a company.  So, just use this list as "heresay evidence" that the network marketing companies you are considering will be boiled down to which sponsor or upline do I trust the most.

My List Of The Top Network Marketing Companies

• Synergy Worldwide
• LifeVantage
• USANA
• Empower Network
• Nerium
• Bidify
• Talk Fusion
• Sisel International
• Organo Gold
• Premier Designs

For a different slant on making money in network marketing, check out http://TeamBeaman.com

 

Evaluating Network Marketing Opportunities

Evaluating Network Marketing Opportunities

If you read 100 articles or blog posts about, 'Evaluating Network Marketing Opportunities',  you would get 100 different blueprints on how to do the evaluation as well as 100 different opinions on what are the most important things to look for when evaluating network marketing opportunities.  This blog post will be no different.  It will, however, give you a little different slant on what is the most important factor in choosing network marketing opportunities.

First and foremost, the evaluation process should include these points (in alphabetical order):

• Company/Years in Business
• Compensation Plan
• Management/Legal Team
• Marketing Plan
• Products/Market Demand
• Sponsor/Upline/Training

Second, overanalysis or 'paralysis by analysis' can be a major drawback when doing due diligence on selecting a network marketing opportunity.  Spend a day or so on your research, if needed, but there is no perfect opportunity, so don't wait for one.  You will never get started if you do.

Third, you should expect to spend at least 6 months to one year before you start to break even with your expenses.  If the expectation is any longer than that, you may be able to survive an outlay of expenses but your downline may not.

Evaluating Network Marketing Opportunities - Company

Many people believe that the MLM company is the most important factor when evaluating network marketing opportunities and will lead with company brochures or slides of an ultra modern building to show the company off.  But in reality, the company itself only plays a small role in determining which opportunity to select. 

The real thing to look at when it comes to company is the longevity.  The company should have been in the MLM business for at least 2 years.  If not, that is a definite negative in your evaluation.  If you are offered a pre-launch position, you are risking your credibility with any people you sponsor and as we will discuss later, your credibility is all important. 

You need to pass on a new start up and, likewise, steer clear of companies that have been around 15 to 20 years.  They may be giants in the industry, but branding is important and negative branding can be very difficult to overcome.

Evaluating Network Marketing Opportunities - Compensation Plan

When giving a presentation about a network marketing opportunity, most people will go into great detail about the compensation plan believing that is what people want to hear the most about.  But that is not true according to several surveys done after prospects listened to presentations.  They certainly want to know that they can make money but they don't need the details about the triple diamond bonus given to the first person to sponsor someone during a full moon.

Again, the most important point about the compensation plan is does it offer a fast start payment capability and can you start earning regular checks fairly early without having to build a large team first.  Making money as soon as possible is more important than learning about overrides and leadership bonuses which usually require a lengthy time period before earning.

Evaluating Network Marketing Opportunities - Management/Legal Team

Other than making sure the company bylaws are following the government's commerce laws, making the company legal, and looking for hidden clauses in the bylaws that can dismiss a distributor without cause, there is no value in trying to determine that the management team is going to be a determining factor in evaluating a network marketing opportunity.

The years of experience of the team, the number of similar positions held and the fact that they are all family men, with 4 or 5 families each to prove it, does nothing to prove or disprove that the management team is a reason to choose opportunity A or B.

Evaluating Network Marketing Opportunities - Marketing Plan

Before you sign on the dotted line, you should make sure that the plan the company or your upline group uses to market the opportunity or products is one that you feel like you can do.  You may have to get out of your comfort zone somewhat to introduce people to what you are offering, but if you are absolutely terrified of calling your brother and asking him to look at a business opportunity and the first thing your upline wants you to do is make a list of everybody you know, then it is time to walk away.

Understand that the company may use one primary method of marketing but your upline may use another.  We will discuss evaluating uplines in a moment, but just be aware that if you don't believe you can market the way your presenter is telling you, you will either have to go out on your own and re-invent the wheel when it comes to marketing or you will flounder and probably eventually quit the business.

One more point about marketing.  Marketing is the only way you are going to make money in a network marketing opportunity.  Your income is going to be directly related to your ability to market effectively your products and opportunity.  Online marketing has been the "buzz word" in the last decade, especially for network marketing opportunities, but unless you have some experience in that field, there is going to be a learning curve that you may not want to endure.  Be very careful before you get started when you are told the primary means of marketing will be from online sources.  It either may get very expensive or very frustrating.

Evaluating Network Marketing Opportunities - Products

Even though network marketing is about the movement of products or services using large networks built by individuals, no bigger scam has been perpetrated than the use of bogus products in trying to create a network marketing opportunity.  Products should not be the main reason for you joining a network marketing opportunity, but they certainly should be a reason for you to pick an opportunity, once all other factors have checked out.

In other words, just because you love the products doesn't mean you are going to become rich if you decide to make it a business.  Products will many times keep people on autoship but only if they see that there is a light at the end of the tunnel, hoping it is not an oncoming train.  But if you expect people you sponsor to stay on a high ticket product without seeing an income from the business, short of it being life-saving, you are probably in for a rude awakening.

Don't evaluate products in a vacuum.  They can be the overriding factor if all other things are equal.

Evaluating Network Marketing Opportunities - Sponsor/Upline

Surprise!  This is the most important factor in choosing a network marketing opportunity.  Let me explain.

People don't join businesses, companies, marketing plans, compensation plans, or products.  They join YOU!  You are the reason that over 90% of people will let you sponsor them.  It has been proven time and time again in surveys when asked why "successful" network marketers got started.  It was overwhelmingly because of the sponsor, upline, and to a lesser extent, training they would receive.  And after all, aren't we trying to find how to be successful in network marketing opportunities and not fail?

This is why many people call network marketing "relationship marketing".  Because network marketing opportunities are really about trust.  Trust that your sponsor is telling you the truth and trust that they will help you every step of the way.  I am a firm believer in building a team for life and the only way to do that is to develop and cultivate that relationship over the recruiting period and the first few months of the business.

If you would like more information about how to build a lifelong team of active, dedicated networkers, visit our team page at http://TeamBeaman.com 

 

 

 

 

What Is MLM - Network Marketing?

What Is MLM-Network Marketing?

Multi level marketing, commonly referred to as MLM, also known as network marketing, is simply one of many ways of selling products or services by a company to customers.  It is based on the belief that word of mouth promotion is superior to more traditional advertising, and more efficiently moves company products dollar for dollar than most other advertising means.

By offering monetary incentives far greater than you would find for a company salesman selling the same product, the lure of wealth and riches is usually the carrot that brings people into the MLM or network marketing business.  Even though the products and services may be purchased directly from most companies without becoming a distributor, most people opt for spending a small amount for a "business kit" from which they can derive their products for free if they just refer a few people.  Thus, network marketing companies make a great majority of their sales to distributors, as opposed to customers who are not involved in the business even though many of those distributors many never refer a single person or even sell a single product.

This has created a firestorm among the anti-MLM and even some government agencies that MLM network marketing opportunities were nothing more than a "pyramid scheme" since over 90% of the products or services marketed by most MLM companies were to distributors and not to regular customers which is in violation of the laws which govern the MLM industry.  However, when you consider that most of the distributors are not actively building the business, they are in essence, just regular customers even though they paid a small fee to become a distributor.  So, the number of "customers" is much higher than the statistics portray.

MLM-Network Marketing Compensation

In getting back to the compensation of MLM companies, most compensation plans are very complex when it comes to how an individual earns money, but the true draw for people is the potential for "residual income".  After all, when you can earn money years from now for work you do today, it opens up a whole world of possibilities.  And considering that the only people, prior to the proliferation of the MLM industry, who could make true residual income were people in the entertainment industry, it instilled thoughts of being as wealthy as movie stars or rock stars into millions of people, where a movie or CD playing commercially years later still earned the artist "residuals".

MLM-Network Marketing Products

As far as the products or services that are produced by the MLM Network Marketing companies are concerned, many are very unique and, in many cases, of high value, since that is one of the ways an average person can market to his/her family or friends without being a sales person.  By having a product which can't be easily bought or duplicated, it creates a unique selling opportunity if the product has value to the end user.  Consequently, MLM products and services usually sell for more money than their competition because they have unique selling points that must be communicated to the customer that a simple ad cannot normally do.  That is why many, many Fortune 500 companies have used the MLM distribution channel to market some of their products.  Because it is cost-effective as well as creates a long term user of the product with repeat sales.  MLM distributors are usually very loyal product users.

Some have claimed that an oversaturation of product markets has occurred when a popular network marketing company has exploded in certain areas causing a oversupply of product and an associated lack of demand.  However, many companies have research and development teams that are constantly producing new, quality products so that doesn't normally happen with MLM companies that produce their own quality products and control the supply chain of ingredients.   And many of these companies have won awards for their superior products and continue to grow market share regardless of the global economic situation.

Conclusion

In conclusion, the MLM network marketing industry has had its share of critics over the years, some of the criticism has been warranted due to slick "snake oil salesmen" trying to make a killing without a true product or making medical claims about products that have been totally out of line and/or against the law.  Nobody benefits when certain people try to con the industry for their own gain.  But, similar types of things have happened in other industries and the entire industry wasn't crucified by the media in most cases.  That hasn't been the case in the MLM network marketing industry.

Over the years, the MLM network marketing industry has evolved into an industry with a "dark cloud" over its head due to some unscrupulous characters and a growing group of dissatisfied former distributors who feel that they had been mislead at the very least, and lied to at the most.  And because of the advent of thousands and thousands of companies with questionable products and top loaded compensation plans, many people today look at legitimate network marketing opportunities with a more than skeptical eye, leading honest distributors to look for other ways to make money online, or at least investigate alternative ways to market MLM network marketing opportunities.