Many people are scared away from network marketing, also known as multi-level marketing (MLM), because of all the myths and understanding about this type of business. Part of negativity comes from reported low MLM success rates.1 However, a multi-level marketing business isn’t destined to fail any more than any other business. Regardless of the home business, you start, success comes from doing the work to build it.
For some reason, many people don’t view their MLM business as a business, like they would if they opened a franchise or started a business from scratch. One of the most important things you can do to ensure your success is to treat your MLM venture as the business it is.
Here are a few other tips to help you improve your multi-level marketing (MLM) and recruiting efforts within the world of direct selling:
Be aware of the Resulting Truth of MLM
To stay safe from pyramid schemes and MLM scams, arm yourself with knowledge. Learn about the direct sales industry as a whole, research MLM Companies carefully, and determine if you’re a good match with your sponsor. The truth is, while you can get rich in MLM, statistics show that less than one out of 100 MLM representatives actually achieve MLM Success or make any money.1
However, that’s not necessarily the MLM business’ fault. Most athletes never make it to the Olympics, but that’s not sport’s or the Olympics’ fault. Any great feat requires knowledge and action.
Find a Company With a Product You Love
Too many people get caught up in the hype of potential big income from MLM, that they don’t pay enough attention to what the company is asking you to sell. You can’t sell something or share your business if you don’t genuinely have pride in what you are representing. Do your MLM research anf partner with a company that has a product you can get excited about. Don’t forget to look into the company’s compensation plan before you join and make sure it is favorable to you.2
Be Real and Ethical
One reason that direct gets a bad rap is that many representatives use hype and sometimes deception to lure in new recruits.3 This leads many to believe that the MLM companies themselves encourage this behavior when in truth, they don’t.
Legitimate MLM companies want you to be honest in your dealings with customers and potential recruits. If you love your product, your enthusiasm is enough to promote it. Just make sure you’re not over-the-top or making exaggerated or false claims.
Don’t Bombard Your Friends and Family
Nothing will annoy your family and cost you and friends, more than constantly pestering them about your business. There’s nothing wrong with letting them know what you’re doing and seeing if they have an interest, but if the answer is “no,” let it go.
Many companies suggest making a list of 100 people you know, and while that’s not wrong, you should consider that most successful MLMers have very few people from their original list of 100 people in their business.4 In most cases, friends and family who are in the business often come AFTER seeing the MLMer’s success. Success in MLM comes from treating it like any other business in which you focus on the people who want what you have to offer. That means deciding who the target market is for your products/services, as well as the business opportunity.
Identify Your Target Market
One of the biggest mistakes new MLMers make is looking at everyone (including friends and family #4) as a potential customer or recruit.4 This is one area where the MLM industry gets it wrong. Like any other business, you’re going to have greater success and efficiency if you identify your target market and your marketing efforts at them.
Set a Goal
MLM is a person-to-person to business.5 While many people don’t like that aspect, especially in the digital age, the reality is that it’s the personal touch that sells the products and business, and retains customers and business builders.
Based on your compensation plan and goals, determine how many people you need to show your products or business to reach your goals in the time you want. Doing so will ensure you grow your business rather than just sustain it.
Listen and Sell the Solution
Many companies provide scripts to help you sell the product or service.7 While these can be helpful in teaching you about your product and dealing with objections, sales is all about being a solution to what a customer needs. By qualifying your contact first, and then listening to their needs, you can tailor your pitch so that you’re the solution to their problem.
Learn How to Market
MLMers often stick to the three-foot rule (everyone within 3-feet of you is a prospect) and other traditional marketing tactics.8 But direct sales is like any other business. It can and should be marketed in a variety of ways that take into consideration your target market, what it needs, how you can help it, and where it can be found. To that end, you can use a variety of marketing tools including a website (check your companies policies about websites),email, and social media to increase product sales and interest in your business.
In the Philippines, one of the leading provider of MLM System is Geer IT Solutions, Inc. They are providing app, software and websites to their customers.
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