Tweet

You Can’t Chintz Your Way To Building A Successful Network Marketing Business.

Guest post by: Andy Acciaioli

Article Overview: How a person enters your network marketing business in terms of becoming a full representative or a lower costing “sub” representative will usually determine their success rate. A person who chintzes their way on to your team finds it very easy to walk away from the business due to their small financial loss whereas the person who comes in and buys the full representative package has more of a chance at success.

You Can’t Chintz Your Way To Building A Successful Network Marketing Business.

Network marketing, like a traditional business, has certain expenses associated with it. These expenses might center around the cost of your getting into that business or the cost of advertising (letting the world know you exist).

Oftentimes a network marketing company will have a two tiered cost of entry. One being far cheaper than the other. This is done to attract that person who might not be able to afford (or who does not want to pay the extra money to fast track their participation). Usually there is a condition tied to the low cost to becoming part of the business: perhaps you have to acquire a lot of customer accounts before you can move on, perhaps you have to be able to gather and sustain a large sales volume. The higher costing position is the one that gives you the most opportunity for success. By electing this option you realize that only a customer acquisition machine could hope to jump from the lower cost of entry to the full position which comes with the payment of a higher cost of entering the business.

To be completely honest with you, who do you think your future upline will focus on? Will it be the one who came in at the lesser cost for which they received “zero” bonus or will he/she focus on the rep who paid the higher cost of entry for which they usually receive some sort of new rep sign-up bonus?

I was once told that the high dropout rate of network marketers is even higher for those that come into your mlm organization at the “chintz” level as they feel that they do not have too much to lose if they simply walk away from the business. (Another trainer once advised me: “If they do not want to invest in themselves why should you invest your precious time in them?”)

Throughout my years of network marketing experience, I have only had a handful of people join my team at the cheaper rate. Not one of them lasted more than six weeks. Last year someone came into my group and after I encouraged him to come in at the full representative rate decided not to. His rationale was that he had been involved with “lots of network marketing companies and they never work out for me”. I can understand why. He could add our network marketing company to his never worked out for him list barely lasting 3 weeks with us and never making a single purchase beyond his

lower cost entry point.

Another trainer once advised me at what to say to someone who uses the “I cannot afford it” excuse. If you told that person that you had a BMW waiting in their driveway for them but they would have to come up with a service fee of “X” number of dollars. (The ”x” represented the cost of entering your business.) Would you be able to get “X” number of dollars by tomorrow to get that BMW? If no, this person has truly tapped out all resources and you should not be talking about your business to him/her in the first place. If yes, then point out the fact that your business has the potential of getting them the car of their dreams, the home of their dreams, the better financial situation of their dreams.

Bottom line: How a representative enters you network marketing business will dictate their (and your) chances of success. No one ever chintzed their way to success in our industry or, for that matter, in other businesses.

Related Articles
  Why Building Trust is Necessary for a Successful Network Marketing Business
  Using Attraction Marketing to Succeed in your MLM Business
  Relax. It’s Only A Network Marketing “Dweam”.
  Network Marketing Tips That Even Big Foot Will Tell You Doesn't Work! ~Omari Taylor
  An Easy Home Based Business Opportunity - Use a Team-Based Network Marketing Approach
  Build A Home Based Business With Network Marketing
  The 3 P‘s of Selecting A Network Marketing Company To Join
  What is Network Marketing & Direct Sales?
  Network Marketing Explained
  Tips To Building A Network Marketing Team
  The Key to Rapid Growth in Network Marketing or MLM is Duplication
  In Order to Build a Successful and Legitimate Home Based Business Opportunity - What is the Missing Link?
  Network Marketing Tip - Effective Marketing Strategies Are Key
  How to Get Results in Your Network Marketing Business Opportunity! ~HAVE SUCCESS TODAY
  Networking For Results-The Power Of Social Media
  Residual Income Opportunities: Steps To Generate Residual Income
  2 Popular Ways To Earn Residual Income Online
  Recruiting Tips In Network Marketing
  Social Network Marketing – Promoting by Virtual “Word of Mouth”
  Day One. All Over Again.

Article Tags: home based business, mlm, network marketer, network marketing



Related Forum Posts
Re: MLM Marketing, youtube, and buzzirk mobile. - I have experience with MLM too. My initial reaction to the business was "snake-oil salesman" but once I got to understand the "overall business model" I am now an advocate to it. MLM (Multi-Level Marketing) is also known as Network Marketing. I realized an MLM business is no different than any other business. One needs to focus on both words "Network" and "Marketing" and give both equal respect. Some people focus heavily on the Networking part but forget "Marketing". I've started to use Building on a Budget and Magnetic Sponsoring concepts in my NM business and have found that people don't get involved so much because of the product but more because of what you bring to the table as far as marketing systems and support. I have both products listed in my signature. you don't have to buy it as the link to the free videos itself provides you a good understanding of what is required to position yourself as my above paragraph. If you do plan on purchasing it I can tell you that the measly $40 will open your eyes BUT your upline will not be too happy (atleast in the short term) beacuse the system is not duplicateable. I wrote this post as a polar post to Bulmer's reply as I have exhausted the friends and family networking and realized i never really focused on marketing. My leads now are more qualified and open to hearing about my opportunity than the other way around. my 2 cents if you plan on growing an MLM or Networking Marketing business.
Network Marketing Business - Hello all, Recently, I had join a Network Marketing Business on a part-time basis. Does anyone here who has some knowledge on this type of business? I want to learn as fast as I can from all the gurus here
Books for Women Entrepreneurs - There's a thread for good books in the Resources folder, but it doesn't target books for businesswomen particularly, so I figured I'd start such a thread here. It doesn't matter how successful you are in your business - it's always possible to learn something new. In subsequent posts I give Table of Contents and brief descriptions for various titles - most of them devoted to the businesswoman - and sometimes a review. If anyone else has read a review, or has read the book and found it useful, please comment! 1. The Old Girl's Network 2. Mother's Work 3. The 7 Greatest Truths About Successful Women 4. Pitch Like A Girl 5. Workplace Warrior 6. Treasure Hunt: Inside the Mind of the Modern Consumer 7. Contingency Planning & Disaster Recovery 8. She Wins, You Win 9. Napoleon On Project Management 10. Why Good Girls Dont' Get Ahead, But Gutsy Girls Do 11. Comeback Moms: How to Leave Work, Raise Children, and Restart your Career even If you Haven't Had a Job in Years 12. The One Minute Millionaire 13. Talking From 9 to 5 14. Soloing: Realizing Your Life's Ambitions 15. 101 Best Home Based Businesses for Women: Everything You Need to Know About Getting Started on the Road To Success 16. Work With Passion: How to Do What You Love for a Living. Revised and Expanded 17. Fail-Proof Your Business: Beat the Odds and be Successful 18. Confidence: How Winning Streaks and Losing Streaks Begin and End 19. Women Don't Ask: Negotiation and the Gender Divide 20. Millionaire Women Next Door: The Many Journeys of Successful American Businesswomen 21. Start Small, Finish Big: Fifteen Key Lessons to Start - and Run - Your Own Successful Business 22. Rewired, Rehired or Retired: A Global Guide for the Experienced Worker 23. The Martha Rules: 10 essentials for achieving success as you start, build or manage a business 24. The Essentials of Entrepreneurship: What it takes to create Successful Enterprises 25. Net Ready: Strategies for Success in the E-conomy 26. The Promotable Woman 27. Leave The Office Earlier: The Productivity Pro shows you how to do more in less time and feel great about it 28. The Work At Home Balancing Act: The professional resource guide for managing yourself, your work, and your family at home 29. Secrets of Six-Figure Women
Why do people hate Network Marketing / MLM? - I've been looking at a number of different opportunities and end up meeting a lot of Network Marketing / Multi-Level Marketing people. Some of the offers look interesting but everyone I talk to about it says to avoid these guys like the plague - what's the deal? Why do people hate network marketers and MLM people so much? Is it not legit?
10 best franchises to get involved - My advice is: 1) Go to the library and start reading business books (accounting, finance, etc.) 2) Go to your local community college and enroll in night classes 3) Join the local Chamber of Commerce 4) Network / Network / Network -- through the above sources. Once you have spent two years doing the above, then look for a 55 - 60 year old business person that is looking to reduce their time in the business. Then you can work on a sweetheart financing option.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Your Local Small Business Online Marketing Funnel

In the Year 2020 . . . Process

Presenting Yourself With Impact at Work

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.