The field of Network Marketing Business or Multi-level Marketing (MLM) has also been instrumental over the past 60 years or so to make the recurring income concept very popular and attractive.
Here, you can build a network of distributors, referred to as your down line, and generate income outside of your own immediate effort. Working for a Network Marketing company is one of the most feasible places where you can generate recurring wealth, so we will now take a look at the secrets to being a
successful network marketer.
Choosing a Network Marketing Company
According to a respected journalist, Richard Poe, in his book Wave4 – Network Marketing in the 21st Century, Network Marketing is responsible for moving over a whopping $100 billion of goods and services yearly on the global front. It is therefore very likely that you have already come in contact with some type of Network Marketing product or service. The concept of moving goods through an army of independent distributors has earned its place in the marketing world despite the negative publicity suffered by the industry. Network Marketing is here to stay; the question that remains is, “How do I choose a company?”
Network Marketers Survival Guide
In the Network Marketing industry attrition rate can run as high as over 70%. This means that the majority of people who try a Network Marketing company don’t survive the first few months! The upside of this is that 9 out of 10 of those who survive through ten years become very wealthy. This industry has produced more self-made millionaires than any other single industry in America. What a recommendation for Network Marketing.
So if this industry has produced so many self-made millionaires, how is it that more people aren’t staying for the long haul? First we would look at some of the major reasons for failure and then some tips to help you escape these traps.
5 Main Reasons Network Marketers Fail
Human beings are complex creatures and so it is always a little risky to make general statements. Over time, however, a pattern emerges and we can get a very good idea why so many people start this business and then drop out.
Mishandling of rejection from close family members and their warm
market.
When someone is first introduced to the concept of Network Marketing they become very motivated—mainly by the income possibilities—to start recruiting right away. Most companies will teach you to start with a list of your warm market and work from there. Even though this is a logical route, rejection from this group can be very discouraging and most people stop there. This means that the majority of recruits will give up after speaking with their spouses for example.
Only lately has Network Marketing become recognized as a viable and respected profession and many are still quick to cry, “Oh! You mean a pyramid scheme”. This comes because of the negative press that many famous companies have received and the general misunderstanding of the public.
False expectations for too early results with too little effort.
Depending on the way in which the business is presented, one can get the impression that there is not much effort involved. I mean, just get two who gets two and you can become rich. When early recruits realize that
considerable networking and marketing is involved in Network Marketing, disappointment quickly sets in. There is work involved, and any business that presents a plan to you and says that you don’t have to do anything is peddling a lie. All successful network marketers worked for their success.
Many marketers do not factor into their planning the cost of advertising their business. This cost can eat up a good chunk of your investment especially when you are just launching. The idea here is that you have to
regard this as a normal business and not just a trial-run venture.
Lack of focus.
Network marketers have gained a reputation of jumping around and changing companies like they change clothing. At least this applies to those who flirt with success but never reach it.
As I mentioned before, those who survive the early years normally go on to do very well. However, there are many people who are looking for the ‘next big thing’ and keep jumping from opportunity to opportunity. This normally describes the behavior of those in search of the ever-evasive ‘ground-floor opportunity’. The rule of thumb here is that you should establish yourself in one solid company before venturing off into other
companies. And if you do work on more than one opportunity, make them complementary to each other. A perfect example is working for a leads company which you’ll need anyway to feed your primary Network
Marketing company. In fact, if you find any tools that enhance your business, why not purchase from a company that has a compensation plan attached?
Failure to work an easy to duplicate recruiting plan.
With the advent of the Internet and all the new communication means that it affords, Network Marketing has come a long way from home meetings and house-to-house presentations. Doing these presentations was very intimidating to many people and so the recruiting chain often broke along the way. The key here is that if the recruiting machine does not have a system that anyone can comfortably do, it will come to a screeching halt. Good trainers know that a simple system must be in place or the trainer’s efforts will not be properly duplicated. If the impression is given that a recruit must be turned into an instant public speaker, giving
motivational speeches at the local Hilton, they can be easily scared off.
At the same time, you must take the time to learn the system and become familiar enough with the products that you can tell a friend about its benefits. As a user yourself, this should not be difficult. A caution here is to
work the system that has been field tested, rather than trying to invent your own methods. This doesn’t mean that you shouldn’t be innovative, but there is no use to reinvent the wheel either, so be teachable.
Baby-sitting of downline members.
Teaching is surely a part of the game of building a strong team. Some marketers make the mistake of doing too much for their down-line members thinking that if they don’t their recruits will leave. This often backfires, however, because the downline members become comfortable and depend too heavily on their upline and never grow strong enough to build their own teams. There is only so much you can do for someone and no more. These spoiled over-dependent down-line members can become a liability instead of an asset to your team. So avoid the temptation to micromanage your team; you’ll get burnt out. Teach your team members
to fish instead of fishing for them.
Secrets of the Heavy Hitters
Now we come to the positive side of the equation. Ninety percent of conquering a problem is to identify the problem. So if we can quickly review the major reasons why people fail we can just avoid those pitfalls. Let us take a look at these pointers:
Be prepared to handle rejection
Who said that any kind of selling was easy? But it all comes down to attitude. If you can understand that a
rejection of the opportunity that you are so excited about is not a rejection of you as a person, then you are on your way. “No” must be interpreted as “next”. This is easier said than done but it’s the price of success. The Internet and other new technologies now allow some rejection-proof approaches, such as using lead capture pages and autoresponder messages. These methods serve to “pre-qualify” your prospects. There
still must come a time when you will have to be in personal contact with your downline members, however.
RELATED: Learn how to avoid the pitfalls and traps in network marketing.
Part of preparing your mind for these ‘negative’ people is to fill your mind with positive messages. There are many Network Marketing and “positive thinking” speakers that will help you keep your spirits up. You will be
surprised to discover the boost that motivational tapes and books can give to your attitude in general. This is one of the benefits of being in this industry—it teaches you to have a brighter outlook on life.
Be realistic in your expectations.
To expect too much too soon will only set you up for a possible letdown. Accept that this is a legitimate business that requires investment of time and effort and you must be prepared to sow the seeds for the harvest you expect to reap. Who builds a house without first considering the cost?
When you are quoted the salaries of the big recruiters, be sure to ask how much time and money they spent to get to that level. This information will give you a clearer picture.
Once you find a reputable company be prepared to stay for the long haul.
This goes without saying but if you expect to succeed you must stay the course. The most successful people in life have gone through very trying times but they stuck with it and left a legacy behind. It is often said that
tough times don’t last but tough people do. The same is true for those seeking to build a solid recurring income. You should commit yourself to at least 3 years before making a decision either way
Jumping from one opportunity to the next only shows a lack of decision and stability in you planning. Teenagers are expected to fall in and out of love every few months, but married couples have committed for life. Be prepared for a marriage, not a fling.
Do not make the business more complicated than it needs to be.
There is always the temptation to improve on the methods that experienced networkers have shown to work. Go with what works, not with what should work. If you find a system that has been working just plug into it and squeeze the last drop of success you can get from this. This means that you must show yourself teachable to your up-line and be willing to teach your down-line members the same system. Success normally comes from doing what works over and over again until it becomes second nature.
Another note of caution is that you should not expect from your recruits what you are not doing yourself. There a many networkers who will give advice that they are not willing to follow. In other words they get their team members to “do the dirty work” for them. This practice takes away from the real meaning of duplication I’m doing the same thing that I’m teaching you to do.
Target business minded people and entrepreneurs
Here again you are targeting people who are already motivated and understand what it takes to run a successful business. These individuals would also already be networking in their businesses and therefore would be in a position of influence.
Such people include chiropractors, real estate agents, salespeople, and internet marketers. These professionals come in contact with a large number of people and could be the boost that the organization needs. The more ‘business-minded’ your prospects are the more likely you will recruit them.
Make a written plan with all your goals and steps to get there.
Psychologists tell us that when we write something down we are more likely to commit to it. That’s why you are required in a contract to place your signature on the dotted line—helps you keep your end of the bargain.
Every business owner should have a goal to which they are aspiring. If you aim for nothing you are likely to strike it. If your plan is to get to a recurring income of $10,000 per month then you should set smaller goals
on your way there. Say, $3,000 per month after the first year, then $7,000 per month after the second year and finally $10,000 per month by the third year.
A very important part of writing out this plan is to calculate what is required to get to your goal. So if you must call 20 people to get 1 ‘yes’, and that prospect is worth $50 per month to you, you will know how many calls you have to make per month to get to $3,000 per month in one year. Looks simple, but most people don’t do this kind of calculation and so they run their businesses with blind expectations.
In Closing you should take a look at your income sources and evaluate them to see how many are recurring and how many are linear. The key here is that you may want to “balance your portfolio” so you can have income coming in even if for some reason you are not able to work. Especially as a small business owner, this can be critical to your survival. Even one of your fat monthly checks tucked away on a fixed deposit account will provide you with recurring income accented interest.
How long do you think it will take Bill Gates, the richest man in the world, to make his first billion if all his bank accounts were presently frozen and taken away? That’s the power of recurring income.