I've been away from my blog for awhile because I've been working on another project. We're getting close to launching it, so when it's ready, I'll let you all know. It's simply the most exciting thing I've ever done in network marketing!
But for now, I'll answer the single most common question I've been receiving lately. It comes in a few variations, but the essence is this:
"I'm skeptical. Does MLM Really Work?"
The answer may surprise you, but in a word ...
NO!Why do so many people ask this question? Some of them probably know people who tried network marketing and failed. Others likely tried it themselves and didn't make any money. Still others think it just sounds too good to be true.
Is it even POSSIBLE to be successful in MLM? The answer is a qualified "yes."
I stated with my company over 9 years ago and retired after doing it for 2 years in my 40s because I maxed out the compensation plan. I received a large, reliable passive income for 7 years (just last month I decided to come out of retirement because the company added another, higher, level to the compensation plan and I'm ready for a new challenge).
But I'm not the only one that was able to succeed. I helped 70 other people in my downline achieve full-time incomes as well!
And I've maxed out the compensation plan in 3 different companies!
So the POTENTIAL is there, but the truth is that a minority of people ever achieve the passive residual income that is held out as the dream goal of this business.
Even those that make big money in network marketing (a very small percentage in itself), rarely have an income that is passive.
Why is this so, and how to overcome it?
First - Let's look at this realistically and first of all acknowledge that most people do not make money, but neither do they fail at doing the business.
The truth is that MLM doesn't work, in the same sense that real estate doesn't work, the stock market doesn't work, franchises don't work and even your job doesn't work.
All of these things are simply business models. They are forms into which energy must be put. So none of them "work," but rather ...
YOU WORK!
So, why do so many people supposedly "fail" at network marketing?
Because they never DO the business! You can't fail at something you don't DO.
Most people join a company but never work it like a real business. they don't commit the time and capital required. They treat it like a money game. So, they lose.
It not only takes time to build your business, it takes time to develop the skills to build your business. There is a learning curve.
For example - the rejection most people experience is totally unnecessary if you know how to approach people. But most distributors either don't get the training necessary, or they get bad training, and so they experience rejection. Totally unnecessary if you're taught properly.
Second -Many people attempt to use a marketing system that doesn't fit their personality.
When I joined my first company I was told to make a list of my closest 2,000 friends and call them all. I didn't want to do that. It felt awkward. I didn't want to mix friends and family with business. But I did it because my sponsor told me to. I failed miserably and hated my life for 6 months.
Later I found a marketing system that fit my personality and started making a full-time income.
Third - Some people join a new company - bad decision since 90% of them go out of business in the first 5 years. So they make money, but then they need to start over again in a few years. This is why it's common knowledge that you should only join companies that are over 5 years old. But even people who know this can't seem to resist the temptation of joining something new and exciting ... but the excitement wears off quickly when your checks are cut off (been there, done that ... several times!).
Fourth -They join a company that pays big money to a few people (the promo of the big checks gets them excited), but the company doesn't pay high percentages to the "little guy." This is a huge mistake because the "little guys" are the majority of the "big guys" downline. If the little guys aren't making money they quit ... and it eventually all rolls up on the big guy.
A compensation plan must have big residual income (not just fast start bonuses) on the front end of the plan so that people with very small downlines make more than they're spending each month. This keeps everyone in. It's the glue that prevents attrition.
Fifth -They join a company that has fad products. Today's "fad" is always tomorrows' "me too," so it doesn't provide for a long-term passive income. Best to find a product that has been proven to be purchased by the market over the long haul even when there is no biz opp connected with it.
The products are the heart of the business. Make sure they are legitimate and have stood the test of time.
Sixth -They join a company without interviewing their upline leaders.
Most network marketing is the blind leading the blind! Even if your personal sponsor isn't a leader, insist that you talk to people in her/his upline that are leaders and see what type of support and guidance you will receive. Leaders should always be happy to talk with someone who is very serious about building a business (we come across them so rarely). Also make sure that their marketing style is a match to your personality (see #2 above).
Seventh -Make sure that the marketing tools available to you are effective. Using tools is critical, and they are what makes your business duplicable.
If your prospects haven't tried your products, then they aren't going to be impressed by your products before they join ... they'll be impressed by your tools about your products.
If your opportunity depends on people to be sales people or educators, then your growth will be dramatically stunted. Tools are leverage. Everyone can simply share a tool (CD, web site, DVD, conference call) and let that do the sales and the education. The question is - how well do those tools do their job?
CONCLUSIONThose are the 7 keys to success in network marketing. Which ones should you follow and which are not important?
You need ALL 7.
Most people don't find success not because there's anything wrong with the business model of network marketing itself, but because they:
- Don't apply a strong work ethic.
- Use a marketing system that doesn't fit their personality.
- Join an unstable start-up company.
- Join a company that doesn't pay the little guy enough.
- Don't have a company with products proven in the market place.
- Don't have excellent upline support.
- Don't have effective marketing tools.
Some people have succeeded without all 7 of these factors. But their success is usually short-lived because their company goes out of business, or the newness of the product or opportunity wears off, or the FTC or FDA comes down on their company, or their checks shrink through attrition as the little guys quit.
Don't limit your chances for success. Insist on all 7 of these factors in your network marketing business and you'll put the odds on your side. Then, with a bit of good solid effort, you can join the ranks of us who are enjoying a large passive residual income. We look forward to welcoming you to the club!
Labels: marketing, mlm, mlm network marketing, mlm training, network marketing, prospecting