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

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