ad

Do people really make money from network marketing? - by Ngobiri Obinna

Network marketing is the use of a network of Independent distributors to sell products directly to people in the community. Also known as referral marketing, it involves the sales of a product by telling people about it (friends, family, etc). Examples of companies that have used network marketing profitably include Herbalife and Mary K Cosmetics. If you become a distributor for one of these companies, you will make some money from selling the product. But the real way to make money is by recruiting a network of distributors who also sell the product, called your downline. You earn commissions on sales made by distributors in your down-line. To make money in network marketing, you have to know not only how to sell your product, but also how to build your downline.
STEPS TO MAKE MONEY IN NETWORK MARKETING

1. CHOOSING THE RIGHT COMPANY AND PRODUCT
I. Look for a stable company. Find out how many years the company has been in business. Don’t work with a company that has been in business for less than five years.

II. Find excellent products. Look for unique products that competitors don’t offer. Choose products that has high demand/turnover. Find a product for which there is a large untapped market. Steer away from fads or trends, as they may not support you in the long run. Sell a product that you yourself use and would recommend.

III. Research the compensation plan. Very importantly, Find out how you get paid. Find out how fair the distribution is between old and new members. Compare compensation plans in terms of long term profitability and genuineness. Research the type of compensation plan your company uses and evaluate how fair and generous it is.

TYPE A: UNILEVEL COMPENSATION PLAN
Pays the same amount to all distributors. This pays very well if you are a good recruiter.

TYPE B BREAKAWAY COMPENSATION PLAN
Using this plan, your payments increase as your distributors ’volume grows. Once they reach a certain level, they break away from you. Many companies use this plan because it is tried and true. Be aware that once a distributor breaks away, you may need to replace her to make your monthly quotas if you have them.

TYPE C FORCED MATRIX COMPENSATION PLAN
Here, the organization of distributors looks like a grid. This means that a certain number of people you bring in to the company will work directly for you, or be on your front line. But after that, any other people you bring in will spill over, or be placed underneath them. This plan encourages team work.

TYPE D BINARY COMPENSATION PLAN

This allows you to have two distributors on your front line. After that, other distributors go beneath them.

IV. Investigate the integrity of the company and its management. Research the CEO. Find out about his experience and background. Know whether he has been successful in other companies in the industry.

V. Learn about their mentorship/training program.

2. BUILDING DOWNLINES
I. Build a large network of distributors for your product. For example, if you are selling makeup, recruit others to sell the same products. Teach them to recruit distributors also. As distributors under you sell more makeup, you will earn commissions from their sales. The bigger your network, the more money you will make.

II. Learn about different recruitment strategies. Talk with top earners in your network about their recruitment strategies. Read literature, listen to podcasts and participate in webinars to learn from people outside of your network. Choose different methods to try. See if they fit your personality and schedule. If so, use them every day.

III. Recruit friends, family and coworkers. This is known as your warm market(and they are the first people who will surely patronize you and refer you to others). Make a list of everyone you know or knew, and contact them to tell them about your business. Since these people already know and trust you, they may be more likely to invest in a business opportunity with you. Don’t alienate people you know by pursuing them too aggressively.

IV. Cold market prospecting is the recruitment of total strangers. This can be intimidating for some people, but the same principles apply as with your warm market. Build a relationship by finding commonalities and creating trust. Resist the temptation to give a long speech about your business. Find things you have in common to begin building a bond.

V. Advertise for new recruits. Place recruitment/distribution ads in newspapers, business magazines or online job boards.

No comments

Powered by Blogger.