Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit.
This strategy involves development of sales, business, teaching and leadership skills. One also should learn how to utilize the power of the Internet to secure the long term success. 7 tips of how to build a successful mlm business are listed below:
1. The first and the most important item is to determine your WHY. Why do you want to build this business? Where are you going to be in five years if you continue to do what you are doing now? Will you have a lifestyle of your dreams? Will you have enough time and money to do what you want to do?
2. Company - How to know which one to choose?
Thousands of new network marketing companies are being introduced each year, but unfortunately more than 90% of them are out of business in less than a year. It means that even if one builds a successful business fast, the company will not be there to pay the promised "residual income". How to choose the right company to work with?
2.1. Make sure that the company is financial stable
The company should be at least close to 2 years in business and preferably should be debt free.
2.2. Unique consumable product, preferably patented, that most people need and like.
This type of product will allow you to build a network of consumers and their reorder rate will be very high. This will allow you to build this business really fast.
2.3 Timing
There are four stages of growth of any business: formulation, concentration, momentum and stability. Richard Poe in his book entitled "Wave 3: The New Era in Network Marketing" wrote "...the phase with the most rapid growth is the momentum phase, which occurs after the company has exceeded $50 million in annual sales. This is the moment when exponential growth kicks in, when fortunes can be made... by these lucky few who got into the company before it went into momentum". This means that companies that are well established, like Amway, are already in saturation, thus it is difficult to make a significant income.
3. Compensation plan
It is difficult to evaluate the compensation plan for a new person. Start from determining the amount of money you would like to make a month and then ask what you need to do to earn it. Make a feasible plan to achieve your goal and ask your sponsor to mentor you and help you to build your organization. Make sure that the company is not promising to pay over 100%, because then they will not be in business too long. Very few companies can afford to pay over 60% of their revenue.
4. Training
Training is essential and it should include 3 different levels:
4.1. Sponsoring your warm market locally and long distance. It is necessary to have a proven and duplicatable system that everybody can follow.
4.2. Working with a cold market. This is much more difficult, but it should be taught to distributors who already exhausted their warm market.
4.3. Application of Internet marketing strategies. This is the most advanced strategy and it takes time and patience to implement it, but it can lead to the most lucrative and stable business. The online course that will show you how to generate an endless new stream of distributors ready to join, can be downloaded, for a limited time only, for free.
Download your course while you can.
This strategy involves development of sales, business, teaching and leadership skills. One also should learn how to utilize the power of the Internet to secure the long term success. 7 tips of how to build a successful mlm business are listed below:
1. The first and the most important item is to determine your WHY. Why do you want to build this business? Where are you going to be in five years if you continue to do what you are doing now? Will you have a lifestyle of your dreams? Will you have enough time and money to do what you want to do?
2. Company - How to know which one to choose?
Thousands of new network marketing companies are being introduced each year, but unfortunately more than 90% of them are out of business in less than a year. It means that even if one builds a successful business fast, the company will not be there to pay the promised "residual income". How to choose the right company to work with?
2.1. Make sure that the company is financial stable
The company should be at least close to 2 years in business and preferably should be debt free.
2.2. Unique consumable product, preferably patented, that most people need and like.
This type of product will allow you to build a network of consumers and their reorder rate will be very high. This will allow you to build this business really fast.
2.3 Timing
There are four stages of growth of any business: formulation, concentration, momentum and stability. Richard Poe in his book entitled "Wave 3: The New Era in Network Marketing" wrote "...the phase with the most rapid growth is the momentum phase, which occurs after the company has exceeded $50 million in annual sales. This is the moment when exponential growth kicks in, when fortunes can be made... by these lucky few who got into the company before it went into momentum". This means that companies that are well established, like Amway, are already in saturation, thus it is difficult to make a significant income.
3. Compensation plan
It is difficult to evaluate the compensation plan for a new person. Start from determining the amount of money you would like to make a month and then ask what you need to do to earn it. Make a feasible plan to achieve your goal and ask your sponsor to mentor you and help you to build your organization. Make sure that the company is not promising to pay over 100%, because then they will not be in business too long. Very few companies can afford to pay over 60% of their revenue.
4. Training
Training is essential and it should include 3 different levels:
4.1. Sponsoring your warm market locally and long distance. It is necessary to have a proven and duplicatable system that everybody can follow.
4.2. Working with a cold market. This is much more difficult, but it should be taught to distributors who already exhausted their warm market.
4.3. Application of Internet marketing strategies. This is the most advanced strategy and it takes time and patience to implement it, but it can lead to the most lucrative and stable business. The online course that will show you how to generate an endless new stream of distributors ready to join, can be downloaded, for a limited time only, for free.
Download your course while you can.
About the Author:
Dr. Grazyna Pajunen is a researcher, university professor, and a consultant in a field of EE. She is also a successful Real Estate investor and a Network Marketer. Recently she has implemented online network marketing strategies to her businesses. The FREE course showing how to obtain an endless stream of customers to your business is available, for a limited time only from MLM Success .
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