Let me now tell you my secret that has increased income from my network marketing business tenfold.
According to my experience, the traditional way of network marketing business is dead. Selling overpriced juices and health products by conducting home meetings and dragging people to network marketing seminars is simply too tedious and time consuming.
Why should anyone join a network marketing effort that is so difficult? I have a close friend who is a Triple Diamond in his network marketing company. I shudder at the routine he follows. His meeting diary is filled from morning until night. He is earning passive income of around $600,000 per year. This excites me into joining a network marketing business. However, when I look deeply into his lifestyle I am a bit puzzled. After having worked so hard for the past 25 years with the company and building his network, he should be having free time to spend with his family. He is financially secure but where is the lifestyle?
I analyzed my friend’s problem. The problem is in the retention rate. In traditional internet marketing business, the retention rate is only around 8%. If you are extremely skillful and have very good training systems (which my friend has got) then your retention rate can go up to 15%. If 90% of your affiliates are dropping out every year then you have to keep recruiting all the time.
My friend’s company does not allow affiliates to have their marketing websites or advertise on the internet for the fear of misrepresentation of their products. They have a website with a back office to run the business, but affiliates are not allowed in marketing websites or blogs. This company is being overtaken by new generation of companies that are internet savvy and understand the power of this new medium.
Digital Product Companies
These days, I only promote network marketing companies that have digital products that can be delivered electronically. These can be educational products, marketing software and systems, wealth generation systems, entertainment and gaming products.
Why do I choose to promote these companies? First, the present generation wants instant gratification. Electronic products can be delivered instantaneously. There is no waiting time. Second, the cost of production of these products is minimal. There is the initial development cost. After which, there is no production or delivery cost. As a result, the profit margins are extraordinarily high.
Traditional MLM companies share 20 to 30 percentage profits. Most digital companies pay in excess of 50% of the profit share. The retention rate of this company is near 100%. Why should anyone leave the company if they break even with just two or three sales?
Most digital products can be sold worldwide without any limiting restrictions by local governments. Company marketing health products will need to get approval from the local authorities. They will need to register and set up distribution centers. Some governments insist on setting up local manufacturing facilities. This delays the launch and expansion of a company in new markets.
The physical products, if they are high-tech, also need to be demonstrated as they may have safety and health issues. This may require your physical presence in a new country of launch until such time you can train some local leaders in your organization. It all adds up to your time, effort and marketing costs.
Digital products have no such restrictions. They do not require any government approvals. Most network marketing companies launch digital products on a worldwide basis. Imagine the earning and potential power you get when you join any of these companies.
Most digital MLM companies, because of their innovations, understand the internet marketing needs of their affiliates. They design business systems to help their affiliates market their business on the internet. This reduces time and effort to build a business.
Internet also provides technological leverage in which most marketing tasks can be automated. Alternately, you can outsource these tasks to India or Philippines where the labor is cheap. Once you automate your business you can relax on the beach, and the money will flow into your bank account night and day, 7 days a week.
A digital network marketing business once set up correctly, requires virtually no time or effort from you. You will need to devote time in setting up your systems and in improving them as technological advancements take place.
Digital MLM businesses give you lifestyle. These days, I sell my lifestyle as a marketing tool. Why should someone in his right mind get engaged in a traditional network marketing business when it is so simple and profitable to run a digital MLM business?
It must, however, be noted that your digital network marketing will need all the ingredients like relationship building, training, belief system etc. that I have discussed in the earlier part of the book for a traditional network marketing business. The principles do not change. Only the methodology of doing business changes on the internet.
Multiple Streams of Income of Residual Income
I am a strong believer in creating multiple streams of residual income. I have written a best-selling book on the subject titled ‘How to Grow Rich by Creating Multiple Streams of Income’.
In today’s world, product life cycles have reduced to the extent that companies go out of business within a very short span of time. There is hardly any job security. The skills that you possess may become redundant or be shipped to another country where the labor is cheaper. In such environment, it is very crucial for you to have multiple sources of residual income and not rely on anyone’s source of income.
Digital network marketing companies, because they take so little of your time, make it possible to engage in more than one business opportunity over the internet. The trick is to establish one network marketing business correctly, and then shift part of your profits to start another business.
To be successful, stick to the network marketing model selling- digital products on the internet. This is a proven formula for creating residual income that will help you to retire from your regular job within a remarkably short period of time.