Network marketing and affiliate marketing online

Posts Tagged Building a Network Marketing Business

Network Marketing Doesn’t Make Money

Aug 5

Posted by Wayne Woodworth in Network Marketing | 2 Comments

I’ve been looking around at what people have been saving about network marketing lately, and what people in my own MLM business are saying about making money with our company. Most of what I’m hearing is that you can’t make money unless you have a huge downline.

That just isn’t true.

How Network Marketing Works

There are two activities that are important with any network marketing business: recruiting people and selling products. Most people seem to focus on recruiting and almost forget about selling product. They depend on new distributors to get on their autoship program. If that is the only way that your team is selling product then, yes, you will need a huge team to make any kind of living in network marketing.

Selling product is where almost all of the money is in network marketing. You get paid based on customers and downline distributors buying product. I currently make more money on a regular basis than my sponsor even though he has more distributors on his team. That is because I sell product to customers.

There is one distributor with my network marketing company who is teaching people to put all of their effort into selling product. He says that you can make more money as a Bronze than as a Silver. Without getting too much into how the company works, you can get to Bronze by just selling a lot of product while making the next jump to Silver requires you to have at least 3 distributors on your team. The problem with going to straight profit is that you start at $0 every month. You don’t have any residual income.

I know there are at least a few companies that pay a “training commission” when you sign up a new distributor, but the focus of the company still has to be on selling a product or service. If it doesn’t, then it is an illegal pyramid scheme.

How to Build a Profitable Network Marketing Business

The best way to build a sustainable income in network marketing is to put some effort into both recruiting and in selling product. My preferred approach is to attract customers and sell them product. Once they have made a purchase I encourage them to join my list so that I can keep in touch with them. They get a monthly newsletter and as an additional incentive, I offer them a 20% discount on orders as long as they remain on my list.

Now that I have their permission, I can give them great information about information related to the products and the business. I can also plug the recruiting side in my newsletters. A certain number of people are going to have an excellent experience and take a look at the business side, and a percentage of them will join.

Once they join, I teach them to do exactly what I am doing. Now I have a team of people who go out and find customers and convert a number of them into distributors. Everyone makes money this way instead of just the people at the top. The new people see what can be done and are motivated to do the same thing. This way is easier for new people because they have something real, a physical product, to tell their prospects about instead of something intangible like wealth or success.

I hope you found this informative. Please leave me a comment below and share this with your followers on the social networks. If you would like to learn more about how I’m building my network marketing business, then just click here.

Wayne Woodworth

Tags: , , , , , , , ,

Dealing with Network Marketing Risk

Aug 3

Posted by Wayne Woodworth in Network Marketing | No Comments

There are risks to network marketing and ways to deal with them.

In case you haven’t already heard, a network marketing business is a business just like any other business, and there are risks. Let’s face it, if you are going to make money then there are risks of losing money too. Just look at the stock market or real estate. You can see examples of where people made it big and where people lost everything.

Network marketing doesn’t usually go to those extremes for most people. It is just something you need to be aware of.

The Risks of Network Marketing

In most cases you aren’t going to lose your shirt starting network marketing business because it really doesn’t take a huge investment. The company I am with costs less than $50 to join even after you add in taxes and shipping on the business kit. There are risks though.

The biggest risk is that the company could fail. You will have spent all of your time to build your business and have a decent income just to see it disappear over night. Variations of that might be that the company gets shut down for violations, the decide to drop network marketing and sell their products through another method, or they get bought out.

Another risk with similar results is that they decide for some reason to kick you out. I have heard that is a possibility. There could be rules violations and I’ve heard rumors of some companies getting greedy. It is usually in the contract that either side can dissolve the agreement without warning.

The final major risk is that you fail to make a go of it and decide to quit. Hopefully in this case you haven’t lost much money. Keep in mind that if this happens, it isn’t the company’s fault. If one person can be a success with an opportunity then anyone can if they do the same things.

Mitigating Network Marketing Risk

One way to reduce these risks in network marketing is to choose a company that has been around for awhile. An established company has a track record, a history of how they operate. If a company has been around for 3 decades then you know that they have a product that sells and a compensation plan that has kept distributors over the years.

It is also possible to do more research on an established company. You can find out things about how much debt they carry, how many complaints have been registered against them, what is their retention rate with established distributors? You can’t find this kind of information about upstart companies because they haven’t been around long enough to establish a history.

There is also the statistic that most new businesses fail in the first 3 to 5 years. If a network marketing company is 30+ years old, then you know that they have withstood the test of time.

Brand Yourself

The second way to mitigate risk when joining a network marketing company is to build your own name, not your network marketing company’s. With the Internet it is very possible to establish yourself as an expert in something relevant to the business that you are building, even if you aren’t exactly an expert in network marketing yet. Are you good at getting appointments with people, establishing relationships, do you know how to create a blog or website that gets traffic. You have some skill that you are really good at.

The benefits of creating a brand around yourself is that people will join you and be loyal to you. If something happens to the network marketing company that you are working with, then you still have a name that attracts people. You just have to find a new company to plug in on the back end. You don’t have to start over.

To summarize, like with building any business, there are risks to building a network marketing business. You can control a lot of those risks by researching and joining an established company. To further reduce your risks, you can build a brand around your name so that if something happens to the company, you still have value in your name and not have to start from scratch.

I hope you found this to be valuable information. Please share any insights you have in a comment below. I would love to hear what you have to say. Go ahead and use the button above and below to share this post with your followers on the social networks.

Wayne Woodworth

Tags: , , , ,