Network marketing or Multi-Level Marketing (MLM) is one of the most popular ways for people to venture into the world of entrepreneurialism. The cost to get started with network marketing is low and it is one of the hottest home business ideas.
Network marketing can be used by brands and companies to improve their online presence and reputation. However, though network marketing is popular, it is not so easy in real life. Many people report low MLM success rates. To succeed in it, you have to be both driven and strategic.
What is Network Marketing?
Network Marketing refers to a business model in which companies sell their products at discounted prices to individuals, known as network marketers. The network marketers will then resell these products. Network marketers may also receive commissions for bringing other people into the business.
Unlike the hierarchies and politics that exist in large companies, the very nature of network marketing is collaborative. You can sell everything from supplements to skincare. In this article, we will tell you how to succeed as a network marketer.
Tips for network marketing success
1. Develop your mind-set
The real key to success in network marketing is to be serious about it. Set specific goals and write them down. Some of these goals may be a certain income level or having a certain number of distributors.
For example, one of your goals may be to earn a decent living as a network marketer. To make that goal Specific, Measurable, Achievable, Relevant, and Time-Based (SMART), you need to focus on it. For example, one of your SMART goals can be to earn 10 lakhs per year in 3 years.
Be genuine and ethical in your dealings with customers. If you are passionate about your product, your enthusiasm is enough to promote it!
2. Brush up on your knowledge
Any great feat requires action and knowledge! Most established businesses that rely on network marketing will have training resources in place to sell their products. These resources can be in the form of videos, eBooks, or documents that will guide you on how to sell your products.
Take advantage of available training and research in the direct sales industry. Attend company conventions and meetings that are held for training purposes.
3. Choose the right company
Finding success as a network marketer will be easier if you choose the right company to work within the first place. Narrow your search to established companies with great products and a generous pay plan. It will also help if you are knowledgeable or passionate about their products or services. You can investigate multi-level marketing companies on the internet to search which company is best for you.
The questions that you can ask yourself while researching companies are:
- How old is the company?
- Does it have a product that you are excited about?
- How are the company’s sales?
If a company ever gives you the feeling that they are running a pyramid scheme, get out while you can!
4. Research about the products
Find about the different products that network marketers usually sell, and the commissions they earn. Since you will be selling these products, make sure that they are safe and reliable. Otherwise, you will be liable for legal action!
5. Find Prospects
Prospecting is one of the most basic skills in network marketing, and you need to learn it. Start your networking business by building a list of your top prospects, and reach out to them. You have to take control of your lead generation and cannot depend on your downline to do it for you.
You have to actively recruit new sellers or ‘downline’ for your team to earn a percentage based on their sales. As per a Nielsen study. 92% of people trust recommendations from family and friends when it comes to making a purchase decision. So, you can recruit family members, friends, and acquaintances as sales reps. Those who know, like you, and trust you, are more likely to do business with you, rather than a complete stranger.
6. Build leaders and make them successful
As a network marketing leader, you have to get more out of new distributors and help them meet their aspirations and goals. The more you grow as a leader, the more chances you will have of getting future leaders in your company. If you have two real leaders in your group, you can be very wealthy!
7. Develop relationships with your fellow marketers
Success as a network marketer is all about the relationships you develop with people above and below you. Equally important is the relationship with customers. The people above you may be those who have brought you into this business. You can look to them for guidance and support. The more they help you, the more you will sell, and both of you will earn at the same time.
At the same time, you have to mentor the people you are bringing on board. Your responsibility is to train them and make them successful. You also have to put pressure on them to deliver.
8. Take care of business
You need to treat network marketing like a legitimate small business that you own. This includes keeping proper records of your tax, writing a business plan, and developing new strategies. Once you start earning some money, you can hire an accountant to take care of the taxes.
The business model of network marketing is such that your earnings depend on the number of persons you recruit to your team. These people are independent representatives who make person-to-person sales, often working from their homes. You have to make a network of these associates for lead generation and sales. And, whoever they recruit, becomes yours as well as their downline.
9. Create an effective marketing plan
The key to success in multi-level marketing is to attract people to join your network, or buy your products or services. Start your marketing plan by determining who needs or wants your products. Make a list of the people you know, who might be potential customers or distributors.
10. Use social media platforms
Network marketing is one of the top online business ideas from home. You have to take advantage of the internet. The internet has changed the way marketers can connect with potential customers. Reach out to them on Facebook or other social media platforms, and build a following. You can use Instagram to try and sell more of your products.
The ease and low cost of social media marketing will open up additional earnings opportunities for you. You can also start a website or blog on a particular subject, or create YouTube videos. Capture the email addresses of leads.
It is difficult to make a steady income with network marketing, and not everyone can do it. Also, many people don’t view MLM as a regular business, like a store. A 2018 survey by the AARP foundation says that the Multi-Level Marketing Success (MLMS) is just 25 percent.
Unlike a corporate job, Multi-Level Marketing will let you earn more than those ‘higher’ than you. But you have to work on it like a real business. So, let Network Marketing be your entrepreneurial expression!
1) 10 Money Lessons for Businesses from the Covid-19 Crisis
2) How to Identify Gaps in the Market for Your Small Business?
3) 8 Simple Steps To Pay Employees Of Small Business
4) What Happens When You Don't Pay GST for your Business?
Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.
Q. What should I do before signing a contract with a network marketing company?
Ans. You should first check whether the company is legitimate.
Q. How often do I have to make presentations to prospective clients?
Ans. Your ability as a network marketer will depend on how strong you are in presentations. Try to take between three to five per week.
Q. What is the number one skill that I have to master to be successful in multi-level marketing?
Ans. To score high in MLMS, you have to master the art of inviting people to be your distributors. This will help you to become a top earner fast.
Q. Why is the number of network marketers growing amidst the coronavirus pandemic?
Ans. This is because millions of people around the world want to do something that can be done from the comfort of their homes. MLM offers perfect social distancing options while still working.
Q. What is the most important reason why network marketing appeals to so many people?
Ans. The fact that they can be their own ‘boss’ and set their hours, is the reason why many people especially housewives and retired persons go for network marketing.