The Secrets to Succeeding in Network Marketing Offline and Online: How To Achieve Financial Success Selling Network Marketing Products And Services

The Secrets to Succeeding in Network Marketing Offline and Online:

How to Achieve Financial Success Selling Network Marketing Products & Services

By Jonathan T. Street

The secrets to succeeding in network marketing offline and online: how to achieve financial success selling network marketing products & services

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ISBN-13: 978-0-910627-88-7

ISBN-10: 0-910627-88-6

Library of Congress Cataloging-in-Publication Data

Clark, Teri B.

The complete guide to your first rental property : a step-by-step plan

from the experts who do it every day / by Teri B. Clark.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-0-910627-98-6

ISBN-10: 0-910627-98-3

1. Rental housing--United States--Management. 2. Real estate investment--United States. 3. Real estate management--United States.

I. Title.

HD1394.5.U6C63 2008

643’.2--dc22

2007049095

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Table of Contents

Dedication

Introduction

Chapter 1: What is Network Marketing?

Chapter 2: A Brief History of the Evolution of Sales

Chapter 3: Who Participates in Network Marketing?

Chapter 4: Franchises versus Network Marketing

Chapter 5: Setting Up Your Office

Chapter 6: Building and Maintaining a Web site

Chapter 7: Becoming an Expert: Self-Publishing and Blogging

Chapter 8: Becoming a Leader and Recognizing Other Leaders

Conclusion

Bibliography

Glossary

Author Biography

More Great Titles from Atlantic Publishing

Dedication

For Brooklyn

Table of Contents

Introduction

The world is changing rapidly. The old ways of doing business and the traditional methods of selling have been shattered over the past decade and are being replaced. The industries that did not exist 20 years ago have sprouted and grown at such a rate, and have achieved such success, that what was true in business just a few years ago, seems quaint and outdated. The reason for this sea of change? The Internet.

It is not an overstatement to say the Internet is one of the greatest inventions man has invented and the possibilities of what it offers are just beginning to be explored. It has completely altered the landscape of business, communications, finances, and media. The old saying that, It’s a small world, has never been truer. Each passing year, more people are becoming connected, more industries are being created, and more money is being invested in online ventures.

Network marketing and MLM (multi-level marketing) have their roots in the oldest type of sales, direct, face-to-face selling. In fact, most business transactions throughout history have resulted from this type of selling. Only in modern retail society have people been able to enter a store, pick out what they wish to buy, and purchase it, almost without speaking with anyone. Before, most sales were done in an open market environment, or by itinerant salesmen who spent the majority of their lives on the road, selling door to door.

Network marketing, at its inception, sought to take this form of sales and improve upon it. It allowed people, such as stay at home mothers and housewives, to have their own independence and own their own businesses. The model for many years was hosted parties, where friends and neighbors would get together for a dinner party and at some point the selling would be done. This method harkened back to the roots of sales, and for some people, was successful.

The idea of bringing a sales model that is based in tradition and personalization, with a modern communication tool such as the Internet, may have struck some as an unholy match a few years ago. In fact, the joining of these two phenomena created a monster, and one which grows stronger each year. It is safe to say that online network marketing has been a rousing success.

The face-to-face aspect of network marketing has been replaced by screen-to-screen selling, which at first may seem impersonal, but when you think of the ease with which a video conference can be arranged, or how much work went into physically visiting each customer to try to make a sale, you start to see the power of online network marketing. Mass communication and strategic advertising are now an integral part of the process. Efficiency and targeted marketing has replaced the older methods of advertising in newspapers, flyers, by word of mouth, and through direct mailing programs.

Before instant communication came along, the advertising model was slow and painful. First, you had to write the advertisement. Then call and place it in the newspaper and wait a few days to see it finally appear in the classified section buried amid hundreds, if not thousands of ads that look and say exactly the same. Then, if you were lucky, someone may stumble across it and call about the offer.

You had no control over who, if anyone, saw the ad, and the large majority of those who did see the ad, likely had no interest in the proposal in the first place.

The Internet has completely changed the advertising industry. With search engines and advertising programs like the ones Google offers, every ad you place will, at the very least, appear on the screen of someone who has some interest in what you are selling. Also, instead of having a handful of local media outlets, the Internet has exponentially added viable outlets while also bringing down prices for advertisers.

The advertising industry is just one which has been dramatically altered by the Internet. Sales, commerce, publishing, and media are just some of the fields that have been irreversibly changed.

Table of Contents

Chapter 1

What is Network Marketing?

Depending on whom you ask, you are likely to get a variety of answers. Some people will tell you it is a scam, likening it to pyramid or Ponzi schemes. Others will tell you it is pure selling – face to face, old-school direct selling straight to the people. Still others will tell you that its sales model is merely franchising, little different than what McDonald’s and Starbucks do. Who is right? It could be that everyone is. Every business is different, and whether a business is legitimate or not, depends on management.

Is it a scam? As with any industry there are, of course, those who attempt to ‘game’ the system and indulge in unethical business practices. But network marketing is a system, pure and simple. In a later chapter we will dig deeper into some of the unethical business practices that have occasionally given the system a bad name.

MLM/network marketing is less interesting and certainly less exciting than what many people say. It is merely a system used to move goods and services, similar to a franchise. In fact, network marketing can be thought of as a mini-franchise, where members pay a small fee to get started, learn the business, get training and materials, and then start their own mini-franchise that they are free to run as they see fit, within the context of the greater company’s guidelines, rules, and regulations.

This process of selling is actually rooted in some of the oldest and most traditional sales methods that exist. Direct sales, or face-to-face selling, is essentially what network marketing is all about. In many societies and countries in the world – in fact, in most – buying something from someone who is standing in front of you is about the only way to do business. Unfortunately, in the United States, and other places in the West, this type of personalized salesmanship is being forced to the side, and replaced by the Internet, megastores, and other impersonal methods of moving mass quantities of goods and services.

Unfortunately, the history of sales is littered with slick-talking, unscrupulous types who were (and still are) only interested in the sale, and will say and do anything to make sure that it happens. The 1800s saw ‘snake oil salesmen’ who were infamously hawking any type of powder, liquid, or other substance as a cure for every disease known to man (and some that were not), marital problems, and every other problem. By the time network marketing was getting started, there was very little regulation being done of the sales industry in regards to what salespeople were allowed to say and do. Likewise, companies typically did little in the way of policing themselves also. In a time when direct sellers are getting a bad reputation, a system which is based on this principle is due for some rough times.

Some early sellers in the MLM industry followed the example of the snake oil salesmen, rather than that of the millions of ethical and legitimate salespeople that came before them. These early few helped get the industry off to an inglorious start by overselling, overhyping, overpromising, and outright lying about their products. As far as the recruiting aspect of the business was concerned, lies and misrepresentations about the amount of money that could be earned helped earn a bad reputation for MLM in its early days also. Even today, there are hard sellers out there who promise ‘get rich quick’ schemes, and tell potential recruits that millions of dollars and the answer to all of life’s problems are just around the corner with MLM.

Of course, this kind of thing happens in all businesses – there is always a segment of any vocation or profession that overpromises what is actually possible. Lawyers, for example, are one group of professionals who have gotten a bad reputation from the ‘ambulance chasers’ in the group, who are without ethics and prey on injured, weak, or unfortunate people. Of course, most lawyers are like everyone else. They wake up in the morning, go to work like the rest of us, and do their best to help their clients.

Most network marketers are the same. Most believe in their products (hopefully enough to use them daily), and enjoy selling them, working and training their downline, and growing their business. While there has been, and always will be the ‘pumpers’ in the industry promising network marketing as the end to all of life’s problems, it is important not to use the same brush to paint the whole industry.

An article on the Web site, mlmflood.com, has a wonderful, on-point description of what network marketing is. The article reads:

The concept is at play in the world of MLM (multi-level marketing). It works on a level basis. On each level you have more and more people selling the product. For instance consider that you’ve joined a MLM company that sells beauty products. You joined because you use the products and see the potential in selling them. You may begin selling them to family and friends who have asked about them. This may branch out to include others.

Eventually others see the potential in the product and want to sell it as well. They sign up under you so that each time they sell a product you benefit as well. Your commission on their sales will not be as much as on your own but it is still an income.

They flourish as well and eventually they begin to sponsor others who want to sell too. Again, you will earn a small commission from each of their sales. This continues endlessly as more and more people see the potential.

When you become involved in network marketing, the foundation of your success is with your contacts. Therefore, it’s important that you have a firm grasp on your own people skills and that you choose people to sponsor who have the same.

If you are fortunate enough to sponsor someone who has many contacts you will benefit as well. Even though you will continue to sell the product you will want to also pursue new leads in terms of recruits.

It is important to sign up with reputable MLM companies. Over the years, some unscrupulous people have set up MLM opportunities that have hurt others financially as well as ruined their reputations in the sales world.

If you have many contacts and feel you can incorporate them into your MLM marketing plan, it is worth finding an opportunity that will allow you to do that. For most people they will find the most success if they are representing a product they firmly believe in.

It is not surprising to know that the most successful network marketers are those that sell a product that they use themselves. Examples of these may be skin care products, cleaning products and vitamins. If the product is making a positive difference in your life it’s that much easier to sell it to others.

You do have to be wary of one thing though. When you become a member of a MLM team, respect the decisions of others. Some people simply aren’t interested in either the product or the business opportunity. If you push either on them that may create resentment. Not everyone will see the potential you do. Respect what others want and concentrate your efforts on people who see how great your MLM experience is.

From a lifestyle point of view, many network marketers involved in an MLM sales group feel completely comfortable and at home with the support group and up and downlines. The products the company sells are used around on a daily basis, so the distributor becomes familiar with them, and talking about the opportunities that they present becomes second nature.

From a business standpoint, while it is possible to use network marketing to make a million dollars (or more), it is more realistic and common for participants to make modest sums. Those thinking about getting into the industry should set their goals and sights on a realistic level. Setting goals is an important aspect of all our lives and careers, and something that we will get in-depth with later in this book.

When choosing a network marketing company, it is essential to do your own due diligence on that company, and to understand all the rules that distributors must follow. There is also the chance that, when dealing with a newer company, the company will be out of business within a few years. Indeed, the vast majority of new companies – not just network marketing ones – fail within a few years of starting. Getting involved with an enterprise that is still working out the kinks of their business plan is not a good idea. A better plan is to join up with a company that has a proven track record in the industry, and which can offer testimonials from distributors who have had success. An established company will be able to offer much more support and typically a better chance at success than a start-up. Network marketing and MLM are hard enough to do well without having to fight with an incompetent home office.

It is also important to know the product or service that the company offers. Is it something truly useful, or is it a fad? Is there a market for this product? Will there be a market in the future? Uniqueness in the product also counts. If the product is something that cannot be found in your normal stores, and has a market, then there is a good chance that you can sell it.

Pyramid Schemes versus Network Marketing

People, who do not know the difference between network marketing and pyramid schemes, mistakenly believe the two are one and the same, due to lots of bad publicity that MLM and network marketing critics have generated and cultivated throughout the years. Although superficially the two may resemble each other, a closer inspection and a little digging under the surface, will quickly show which enterprises are legitimate, and which are scams.

It is important to remember – especially for those just starting in the network marketing business – that your beginning sales will likely be to your ‘warm market’ which consists of friends, family, and people in your inner circle. Before putting one’s credibility on the line, it is important to be sure what is being sold is a legitimate product, and safeguards are in place for both buyers and sellers. Especially for beginners in the business, making sure the company being represented is a legitimate one is important.

The Amway Corporation was instrumental in bringing about many of the definitions of what is and is not allowed in network marketing. A later chapter will deal more with Amway and its history, but for now we will outline some of the keys to look for when trying to judge whether a company presents a legitimate opportunity or not.

Initial Investment – Most companies require some start-up fees, or investments in the form of demonstration kits or sales kits. These are acceptable and normal fees, provided that