There are many people that are wondering whether are not it is possible to make any real money in network marketing. What does it take to go from $0 (just getting started) to earning a six-figure income? How can we go from earning a few $100 a month to earning that $200,000 a month in network marketing? Also, why is it that less than 5% of the people in this business of multi-level marketing ever make that higher level of success?
There are several factors involved that determine the level of success that can be made in this business:
1. The Network Marketing (Multi-level Marketing) Company – The Company is responsible for the products and/or services that are offered to its customers (referred to as distributors). The Company should drop-ship everything to its distributor’s customers. Everything that involves the making and distributing of its products and services to quality control is the responsibility of the Company. The pay plan (compensation) should be fair to the brand new person starting up. The new person should be rewarded with quick pay (such as weekly fast-cash bonuses) that is paid every Friday. NO hard to qualify requirements! Paid on every distributor he/she is responsible for bringing into the business (including just one distributor).
2. The Distributor Is Responsible For Marketing Their Business – We as distributors should conduct ourselves like we would in any business. Honesty and Integrity are a must! What it boils down to is if we do not have our character then we do not have anything. How we choose to market ourselves and our business is up to our discretion as long as we do not disgrace (make out-rages claims) the company (or ourselves). Most companies allow you to market the products retail or wholesale signing up other distributors who want to work-from-home. Right here let me say, We (the distributors) absolutely have to sell ourselves to our prospects before we can ever sell the products and services that are offered by the company for us to sell. People Will Buy Into the Opportunity Only If They Can First Buy Into You! (Your Honesty and Integrity)!
3. The Way Systems are set up for marketing – Are there company websites personalized for the use of the distributors? Does the company you are looking into working allow distributors to use mail-order sales on the front-end to market their business? Most network marketing companies do not pay enough up-front to pay for the marketing cost – so it is important to produce the front-end sales from a marketing sales letter. There is no reason why you have to talk to family, friends, and your otherwise warm market unless you want too. What happens after you have exhausted your list of family and friends? Do you go door-to-door; call people on the phones (telemarketing), etc.? Why not prospect with a sales letter to find people interested in working from home?
It is very important to understand that Network Marketing is not really any different from any other business. As a matter of fact Multi-Level Marketing has been referred to as a type of Franchise Marketing. The biggest difference between Franchise Marketing and Referral Marketing (just another name for Multi-Level Marketing or Network Marketing) is unlike Franchise Marketing – Network Marketing does not require a $25,000 or more franchise fee.
You can actually start a Multi-Level Marketing distributorship business for a minimal start-up cost. Usually for under $200 to get your Network Marketing business started. From the stand point of the products or services that are offered we should only (with most companies this is the case) be required to order what we are personally able to use each month. No Product Stocking! There is no reason why we should have to have a garage full of products. Remember the company drop-ships the products/services to everyone so we do not have to have an inventory of products. Everyone just simply orders what they are using each month.
Now the way we earn commissions is not in signing (recruiting) people into the Referral Marketing company. But by the products everyone we refer to the company orders and uses on a regular basis. When was the last time you shopped at your local store and had the manager pay you for referring someone else? Never, right? The Referral Marketing Company does when those you referred order products/services.
Now let’s look at why most people do not make any money and less than 5% are those earning the real money in the business of Network Marketing (MLM):
1. Most People Do Not Treat It Like A Business – Just like any business you have to be in for the long-haul. Many years ago I had a conversation with the franchise owner of the McDonald’s in my area. He said something to me that I have never forgotten. He said, “It took me five years before I ever saw a profit.” He did not make one red cent (penny) in the first five years. Please hear this loud and clear, “You will never make any money in Network Marketing if all you do is order product for three or four months and do not do anything to introduce other people to your Referral Marketing Business!” As a matter of fact, most people at best will see may be $20 their first company commissions check. But for those who hang in there for two to five years and they are marketing (introducing people) to the business they have started these are the people who see Multi-Level Marketing begin to really pay-off. Treat this like a business! Referral Marketing is not a get-rich-quick scheme (Ponzi scheme or Pyramid scam)! In reality there is no such thing as getting rich quick. Riches come in but they come in slowly over-time. Rule of Business 101: First make the investment in time and resources (money) then watch your investment grow over-time.
2. Most People Think the Grass Is Greener On the Other-Side – When most people find and start with a company all of a sudden they see the newest thing come along and jump ship. This is perhaps the biggest reason why most people never make or have that higher level of success in Network Marketing. Those in the upper 5% bracket that are making the really huge income $200,000 or more know the ‘grass is not greener on the other side’ and they stay where they are. This is what we call unmovable. Find a stable company at least five years or more in business and work with your upline support team. Build – Build – Build! Don’t Quit! The Money will come over-time!
3. Most People Just Do Not Want To Pay the Price – There is a price that must be paid in any business and Multi-Level Marketing is no different. Listen the price we are talking about is not the cost of products/services. Heck, we are all buying products and services everyday. We buy phone service, electrical services, groceries, vitamins, personal care, and the list goes on. The price we are talking about is less TV, mailing letters, picking up the phone, building relationships, and just the FEAR of getting out of our comfort zone. The upper 5% believe it are not had to face the fear of comfort zone syndrome as well. They overcame their fears and climbed to the upper top of 5 per centers.
4. Most People Quit Because they are Quitters – If only we could find those like ourselves that will never give up. Most people are in and out so fast it makes you wonder why they got in to start with. I do not want to make this a pity party for the quitter. Those that quit never intend to be quitters they just do not know how to do anything else. Here is a quote for you, “When the going gets tough the tough get going.” Quitters have not learned how to be tough. If only we could learn to help them toughen up then they would stay the course. Hey, these are the people who need that Leadership Training.
5. The Upper 5% Went All the Way – The climb to the top is something that requires stick ability. One of the best ways to make the climb to the top is by personal development. There are more people who I have heard in my life time say, “It has always been this way and it will always be this way.” We are going to have to make a paradigm shift. Change our thinking to climb to the top. The upper 5% without exception have done just that. They do not listen when someone anyone tells them ‘you can not do that it want work; it is a ‘Ponzi scheme’ or Pyramid scam’. Those that are earning the really big six-figure incomes and reached the higher success levels did not Quit!
OK, here is what you need to do to make that higher level of success. Find the company you can sink your teeth into and be sure you do your home-work on this company (five years or more in business to start). Find an upline support team with real systems in place and they will be there in person when possible (sometimes they may live cross country), available by phone (this is the biggy), and they can be reached as often as needed.
If you are going to market your business you need away to recoup your marketing expenses with up-front monies. The most successful distributors have systems in place that sell information on the front-end then back-end the prospect into the Multi-Level Marketing Company. Be sure though that you also have access to these materials and marketing rights to selling the front-end information.
VERY IMPORTANT: We are living in times when the truly successful offer fulfillment centers that can handle all the follow-up for you. Contacting (calling prospects), mailing presentation packages on your behalf, and offering full service training from signing up to motivation training (conference calls, etc.) once the people are signed up.
Before you sign up know who you are working with and that they are truly there to help you every step of the way. Can you contact them by phone, email, have they returned your call within a reasonable amount of time (48 hours or less), and is there a real relationship being built? We are living in sometimes when everything is automated, but do not accept this as an excuse. We want and need some one-on-one time with a real live mentor to coach us every step of the way. Ok, now it is time to get going – Sign up with your upline mentor distributor support team and start ordering the products/services from the Multi-Level Marketing Company. Do Not Buy products/services from your local store or anywhere else that your company (MLM) carries. You are now buying from your company and be sure you are marketing your business as well, that is if you want to make money.Yes, it is possible to reach that higher level of success.