Many people confuse MLM with direct sales. Some of this is because MLM companies are connected with direct sales associations. I did not begin to succeed in MLM until I realized the difference. In direct sales you are continually looking for people to sell a product to. In MLM you promote a product that must be able to stand on its own to a few people. You then as there sponsor help them to promote the product to a few people they know.
Because you're working with only a few people follow-up becomes critical to your success. I have been to several MLM meetings where there was a huge amount of hype. The main emphasis was on getting new people to sell their product. People were pressured to sign up right now. For me and lot of other people that just does not work. I have been most successful when I have shared samples with my friends and they in turn shared samples with their friends. I have found that through the use of the right tools to help people thoroughly understand how network marketing or MLM works I have much greater success. If people like the samples that I give them I encourage them to become a customer. I then offer them training with the tools that I use. Follow up and support are the keys to success. It is critically important that each person that you sponsor understands that they are in business for themselves, but they should never have to work alone. Any person that you sponsor should never have to make a company presentation on their own. Even though we each have our individual business we work together as a team. Every individual on the team have their own strengths and weaknesses. I have some people that are awesome promoters. I have some that have a hard time promoting but do an excellent job at presentation. I have some that do a phenomenal job and follow-up but don't do well at presentation or promoting. The key is to use the strengths of each of your team members for the good of your organization.
I believe that in direct sales there is more immediate financial return. However, if you build a good organization made up of several independent businesses the potential as far greater. With MLM there is a residual income. This means that you get a small amount of all the transactions in your organization. It is important that your company have a good compensation plan. It is not uncommon in the retail selling industry for half the cost of the product to be involved in marketing. In MLM the company does not spend a great deal on marketing. You as the associate are their marketing. A good company should have about 50% payout. Most companies have a minimum threshold for a payout. Better companies allow for for credits the build up over time.
MLM industry wide less than 15% ever make enough to cover the cost of their own products. To a very large extent this is because of poor sponsorship and lack of training. MLM is one of the greatest industries in the world. It is one of the few places that anyone with the true desire to do so can become financially independent. This will only happen if you have proper training. The vast majority of the people who fail in MLM marketing, fail because of lack of training.
Copyright (c) 2013 Whole Life Ministry
Because you're working with only a few people follow-up becomes critical to your success. I have been to several MLM meetings where there was a huge amount of hype. The main emphasis was on getting new people to sell their product. People were pressured to sign up right now. For me and lot of other people that just does not work. I have been most successful when I have shared samples with my friends and they in turn shared samples with their friends. I have found that through the use of the right tools to help people thoroughly understand how network marketing or MLM works I have much greater success. If people like the samples that I give them I encourage them to become a customer. I then offer them training with the tools that I use. Follow up and support are the keys to success. It is critically important that each person that you sponsor understands that they are in business for themselves, but they should never have to work alone. Any person that you sponsor should never have to make a company presentation on their own. Even though we each have our individual business we work together as a team. Every individual on the team have their own strengths and weaknesses. I have some people that are awesome promoters. I have some that have a hard time promoting but do an excellent job at presentation. I have some that do a phenomenal job and follow-up but don't do well at presentation or promoting. The key is to use the strengths of each of your team members for the good of your organization.
I believe that in direct sales there is more immediate financial return. However, if you build a good organization made up of several independent businesses the potential as far greater. With MLM there is a residual income. This means that you get a small amount of all the transactions in your organization. It is important that your company have a good compensation plan. It is not uncommon in the retail selling industry for half the cost of the product to be involved in marketing. In MLM the company does not spend a great deal on marketing. You as the associate are their marketing. A good company should have about 50% payout. Most companies have a minimum threshold for a payout. Better companies allow for for credits the build up over time.
MLM industry wide less than 15% ever make enough to cover the cost of their own products. To a very large extent this is because of poor sponsorship and lack of training. MLM is one of the greatest industries in the world. It is one of the few places that anyone with the true desire to do so can become financially independent. This will only happen if you have proper training. The vast majority of the people who fail in MLM marketing, fail because of lack of training.
Copyright (c) 2013 Whole Life Ministry