Network marketing companies love to tell new recruits and
prospective recruits how to become financially independent simply by telling
others about the product or service they are selling. The smooth-tongued salesperson convinces you
that they have a superior product or a unique service that is taking the market
by storm, and if you don’t quickly jump on the band-wagon, you will be left
behind as others become millionaires.
Multi Level Marketing Has the Potential to Make Millionaires
The income figures these Multi Level Marketing companies are quoting sound too good to be true, yet some research on your part will most likely find that they are, in fact, the truth. What the MLM companies don’t tell you is that they are referring to a mere 3% or less that generates that kind of income, and that the loss in sales force, or downline distributors, is about 93%, which must be continually replaced.
Most people who get into direct sales have no background in selling, but believe that the product will sell itself. A good product will do that, but income generated from sales alone is not where the big money is. It is in recruiting distributors beneath you and under them that create the volume of sales that bubble up to the top. Obviously if the downline is weak, the distributors do not work the program, or they leave and join another MLM, that loss to your downline will have to be replaced. Your success depends entirely on how well you can recruit a motivated and efficient sales force in your downline. There is no sitting back and letting the dollars roll in. You must recruit, recruit, recruit.
Effective Recruiting Takes Training and Persistence
If you have a good product and a burning desire to bring it to the public, establishing a MLM system is a cost-effective way to do it. If you have no prior experience with network marketing, you need to hire a trainer or buy a training program to get your sales force going. Why try to reinvent the wheel when you can utilize consultants with years of direct sales experience to set up your training and compensation plan? Be sure to have an attorney with MLM legal background to be sure that your company is legitimate.
Be the Leader
Once you have a good marketing plan established, you need to be actively recruiting, training distributors, and selling the product too. Mary Kay Ash, of Mary Kay Cosmetics always said, “The speed of the leader is the speed of the gang.” You need to be the role model, but rejoice when one of your people in your downline tops you!
Take Care of Business
Creating your own MLM company is what every distributor should believe is the objective. True, you may be sharing the same product, but each distributor is responsible for the success of his or her business. Like raising a child, there are times to be patient or demanding, but always give it attention.