For many network marketers this home business is like a religion to them. They like to argue about what company is THE BEST, about what product is THE BEST and about what compensation plan is THE BEST. The truth is that there is no ONE perfect company, there are many. And what appeals to you won’t appeal to everyone. This arguing would all be quite amusing if they weren’t so serious and if the topic didn’t derail so many businesses in the process. Keep in mind that during the average 3.5 year career of a network marketer less than 5% ever earn over $200 per month in net profit. Most don’t even break even.
This is a problem not with network marketing; after all we can parade success stories in front of you all day. We can also point to similar failures in other industries. No, this is ultimately a problem with the marketer. Lack of money, lack of knowledge and lack of skills are all fundamental factors in failure. What is often overlooked though, is the importance of having a good company to promote.
Understanding what it takes to find a winning network marketing program is critical, because that’s where it all begins. Make a poor choice here and it will haunt your entire marketing effort. No matter how good your marketing, if you have the wrong offer for your prospects, or the wrong offer for you, you will fail. I’m sorry to be that blunt but that’s simply a fact. Realize that “network marketing” is not a commodity. Realize that a “system” is not a business in and of itself. There are a lot of scams and pseudo-scams that focus not on what’s actually important in business, namely selling the product and/or service, but on the system. According to the FTC and legal precedence, this is a sure sign of trouble ahead. Just stop by the FTC’s web site (www.ftc.gov) and you’ll see a steady stream of scams the agency shuts down. Now, don’t get me wrong, a system is a fundamental part of a good network marketing business. The question you need to ask is, “Is the system all there is to this business?”
Ever since network marketing took hold back in 1920 with Nutrilite (now a subsidiary of Amway), network marketing has ignited the dreams of countless aspiring entrepreneurs all over the world. That’s because the concept is simple and as has been proven in real life to generate an enormous income over time. Today network marketing companies generate in excess of $20 Billion in annual sales in the U.S. alone. A lot of successful contacts here – staugustinefleamarket.com
It’s the enormous income potential and the advertised ease of getting it that has given network marketing a black eye and has created very vocal opponents of the industry. Even the Federal Government has made accusations that network marketing is an illegal pyramid scheme. But network marketing has prevailed. Amway Corporation proved the key test of a legitimate business – that even the last person recruited into its networks can make money. (In a pyramid scheme, large numbers of people at the bottom end up paying money to only a few people at the top.) In doing so Amway set the precedence for what is now considered legitimate and what is considered illegal. The Basic Principles of Network Marketing
The concept of network marketing is not only simple, it’s a very viable distribution and marketing choice for certain types of businesses. It’s the very reason that network marketing is such an attractive business model not only for home business entrepreneurs but for corporations as well.
The first basic principle of network marketing is that as a rule, person to person sales is more effective than TV, radio, print or direct mail advertising. Moreover, network marketing employs this method of marketing primarily with a person’s warm market or the people the marketer already knows and that know him or her. Products that require a certain amount of consumer education benefit most from this method of selling.
The concept is then expanded, in that customers who are sold on a certain product can be motivated to sell it themselves, and to recruit others to become sellers as well, forming a business “network” over time.
Sellers will have an incentive to sell and to recruit others, as they’ll be paid commissions both on their own sales and their recruits’ sales. In other words, the larger your network, the more money you can make.
Last, but not least, success is not guaranteed. This is important because risk is inherent in any business. While network marketing is a relatively easy business it is still a business and this is something that many people lose sight of as they look for high rewards for very little effort. In the end only the best products and services, and only the best network marketers will survive in the business.
Fraud, bad press and MLM bashing in the media
The Internet has made it easier for illegal companies – mostly pyramid schemes and related scams – to get in the face of consumers as well as legitimate companies. Many of these scam artists portray themselves as honest network marketers. As a result more people are falling victim to the get-rich-quick hype of these scams and the media is reporting on it.
The FTC has also commented that the number of illegal pyramid schemes appears to be growing as a result of the easy entry made possible by the Internet. No longer to scam artists need to invest in boiler room operations. All it takes is a web host and a copy of FrontPage.
So what can you do to protect yourself and help ensure your business success? Simple: find a good reputable company to promote! Learn what makes a good company and understand that you (and your future prospects) have many options.
When you find the right company, commit yourself to marketing ethically. Steer clear of hype and earning claims. Don’t talk about how much money your prospects can make and how fast with the intent to impress them. Network marketing is not a commodity. There’s more to building a sustainable business than just a compensation plan. And realize that if your “greener grass” attracts your prospects to your offer, the “greener grass” will soon sway them to someone else’s offer.
The number one key determining your ultimate success.
There are a lot of things to consider when choosing a network marketing company. Some of them are important and some aren’t. Listen to our audio titled, “Selecting A Winning MLM Program” recorded on 6/26/2003. In this audio we cover the major things to look for in a program and also look at what some other people have said about researching a company that really won’t help you. You’ll find this audio in our Audio Archive on our Members Only Site.
One thing I have observed both in myself and in literally hundreds of network marketing leaders is that in order to have success, you must have passion for your product, service or companies mission. Many people join a network marketing program because they want to make a quick buck or earn a little extra income. 99% of the time this is not enough to move them to action.
Humans are lazy by nature. And in nature this makes a certain amount of sense: Conserve energy for important tasks. But in business and many other areas of our lives (health, relationships, finances, etc.) it causes us to gravitate toward doing nothing until we have to or are sufficiently motivated to do so.
I have yet to see someone succeed that was only motivated by making the next dollar. Sure, they will tell you that money is a motivator but when you really examine it, it’s not the money they want, it’s what the money will do for them. Even this is rarely enough to move someone into real action. It takes something more.
Every truly successful person I know, not just in network marketing, has one thing in common: they are passionate about what they do. Think about this for a moment. If you hate your job no amount of money will make you like it. Large sums of money may make it more tolerable, but you still won’t like it. This is why it’s so important to have a product or service that you can promote passionately. A similar thing can be said for being passionate about a company’s mission or having your own mission that you can step behind 110%.
When I say “passion” I don’t mean that state where you are thinking about that 5000 sq. ft. home on the lake and never having to go to work again. Dreams like this are important, but what I’m referring to is a passion that would keep you going even if there were very little money in it.
This passion will drive you to success and you will love the journey! Just be sure not to let passion compromise your ethics. Some marketers are so passionate about their product or service that they start to modify the facts about it. Remember that claims you make about your opportunity or product can be checked. Don’t let your enthusiasm turn your marketing into hype. Find true passion for your business and you will find.