The history of Network Marketing is just fascinating to me. When network marketing began in the 1950′s it was very much a direct sales business. Back then, MLMers would literally go door to door getting customers for laundry detergents and multipurpose cleaners.
There was much less emphasis was placed on sponsoring. Independent reps would buy their products from “direct” distributors who had achieved a level where they could deal directly with the company. Direct distributors would have a truck load of products shipped to their home!
Thankfully, MLM has made much progress since then. Every independent distributor deals directly with their own company and there’s no need for huge inventories. [click to continue…]
Duplication is a very important aspect of the network marketing profession. It allows us to achieve the big promise of MLM, which is to have a lifetime of recurring passive income, which gives us ultimate freedom.
However, there are 2 “laws” that hold the key. They are…
It’s not about what works, it’s about what duplicates.
The way in which you sponsor your people, is the way that your people will try to emulate
What this means is, if you do something that works for you, and not for anyone else, then the chances of you being able to attain the big promise of network marketing are slim.
Long term residual income is the big promise of MLM. It can’t achieved if you have to build it over and over again. It can only be achieved if you are in a company that will be here for the long haul.
There is a saying that goes “Lies, damn lies, and statistics”… I don’t know if this is true but I have heard that 90% of new network marketing companies will not last two years, and 90% of those remaining will not last for four years.
That’s a 99% failure rate for new network marketing companies in the first 4 years!
The recent iLearningGlobal termination of its MLM pay plan is a classic example. It did not last 2 years as a network marketing company, and it was one of the biggest companies in recent history to fail in such a short period of time.
Whether you like it or not, you can’t have long term residual income, which is the big promise of MLM, without an autoship program. Long term residual income starts with autoship.The reason why autoship programs are so important is very simple. See, the vast majority of businesses make money from the small purchases of many customers.
Retail stores such as Walmart make their money from the small, regular purchases of their shoppers. Banks make a ton of money by charging you regular, hardly noticeable monthly fees. Utility companies, insurance companies, telecommunications companies all charge you by the month for their services. In fact, a business that relies on the custom of just one client is in a very risky situation.
Network marketing works exactly the same way, it is just a different form of distribution. In MLM, your money is not made from one hot shot who’s able to sell massive volumes of product. Your money is made by the regular, small efforts of your group of people. [click to continue…]
I’ve said it before and I’ll say it again: Network marketing is a business built on relationships. No relationships, no MLM business, no long term residual income. But how do you build solid relationships with the right people? The answer is MARKETING.
Marketing is the tool you use to put yourself in touch with qualified people. The vast majority of network marketers don’t know how to market. As Mike Dillard of Magnetic Sponsoring fame says: “This is an industry of promotion pursued by people who have no idea how to promote.” Most network marketers are running around like untrained salespeople, pitching their business to anything with a pulse. And they are failing miserably.
In the third book of the Rich Dad series, Rich Dad’s Guide To Investing, Robert Kiyosaki brilliantly points out the difference between sales and marketing. Sales is done person-to-person, marketing is done through a system. You can only talk to so many people and be rejected so many times before you get worn out. But if you have an effective marketing system that does the prospecting for you, this is a completely different game. [click to continue…]
What’s your responsiblity as a network marketer? Our goal, long term residual income, is our reward for helping other people become financially independent. It’s the result of us developing leaders in our downline organisations who in turn, foster leaders in their own downline organisations.
Network marketing is a leadership driven business. As such, you can only succeed when you lead by example. You cannot make your downline members do anything, as they are not your employees – they are independent entrepreneurs of their own accord. You cannot motivate anybody. That has to come from within others themselves. But you can lead people by teaching other people how to play the game.
Your responsibility is to develop yourself into a leader and lead. Period. However, some MLM companies want you to be the babysitter. They don’t want to take on any responsibility in training their distributors or be accountable for their distributors’ actions so they put all of that responsibility on you. And if you don’t fully engage in your role as a babysitter, they can terminate you or steal your bonus check.
Again, the proof is in the policies and procedures. Many companies have the following clauses in their policies and procedures word verbatim. You’d think they all hired exactly the same lawyers to write their contracts. In fact, they do… [click to continue…]
“On page 43 of this Success In 10 Steps, You'll learn a vital skill that all Top Networkers have Mastered: How to create Trust and Rapport with Prospects Instantly!”
Long term residual income is the big promise of MLM. It can’t achieved if you have to build it over and over again. It can only be achieved if you are in a company that will be here for the long haul.
I’ve said it before and I’ll say it again: Network marketing is a business built on relationships. No relationships, no MLM business, no long term residual income. But how do you build solid relationships with the right people? The answer is MARKETING.
What’s your responsiblity as a network marketer? Our goal, long term residual income, is our reward for helping other people become financially independent. It’s the result of us developing leaders in our downline organisations who in turn, foster leaders in their own downline organisations.
