grow your network marketing business

May 28 2018

How to Jump Start Your Network Marketing Business Through Higher Conversion Rate?

Wealth Creation Academy Network Marketing, Principles grow your network marketing business, network marketing strategy, start building your network 0

Converting leads into team members is a function of your BELIEF that you have in your product, compensation plan, integrity of your company and the network marketing the concept of wealth creation. We have covered this in details earlier. If you have the BELIEF THAT YOU CAN SUCCEED AND ARE WILLING TO LEAD…….. CONVERSION RATE WILL GO THROUGH THE ROOF.

Conversion rate also depends on your skills level. MLM is first and foremost a people business. So, the first thing you have to master is the people skills. Spend your time studying people … and learn how to find the people STARVING for what you have to offer. FIND A MOB OF STARVING PEOPLE AND THEY WILL CONVERT TO YOUR CAUSE WITH MINIMUM EFFORT.

If you do not understand what the prospect is looking for, then you will never be able to sponsor the person. You must learn to discover the dreams that shape and drive a person. If a person is not aware of his dreams, help him to uncover the dreams. Don’t talk too much…….just listen to their dreams. What do they want most passionately? How do their desires drive them in decision-makings? What gets them in frenzy when they look for an opportunity?

What attracts them? Is it your product or your compensation plan? If a person is attracted to your product, don’t drive him away by focusing on the business plan. Network marketing is not recruiting. It is relating.

”Why Do Some People Succeed in Network Marketing, While Others NEVER Do?”

The answer to this simple question is that, successful people make the effort to understand what really makes people tick … what motivates them … why they make the choices.

Research has shown that there are four distinct types of personalities. It is called the DISC Personality composition. D stands for Dominance, I for Influence, S for Submission and C for Compliance. Understanding the DISC personality and how to deal with them will greatly improve the ratio of conversion.

DISC TO NETWORK MARKETING SUCCESS

DOMINANCE Or ‘D’

DOMINANCE or ‘D’ is 15% of the population. They relate to control, power and assertiveness. They are motivated by money and are money-focused.

Don’t bother talking to them about family and social things. They don’t care. They are ambitious, determined, egocentric and strong-willed.

How To Sponsor a ‘D’

All they want to talk about is money, money and money. They think network marketing is a sales business. For them, it is sell, sell, sell. They’re just looking for somebody who will build, build, build. They are happy with 5% retentions. For them, it’s a sales business.

‘Ds’ are the corporate CEOs. They are “get-the-job-done” type of people who believe that everyone in network marketing is trying to recruit them. But it’s a fallacy. You simply cannot coach them.

They have big egos. They like to order people around. It works in the corporate world, but not in network marketing. They can drive people away.

You want to sponsor ‘Ds’ because they have the connections and will put you in contact with the right kind of people who matter. They know business owners and leaders. Don’t ever try to coach or mentor them. Never tell them what to do, because it’s NOT going to happen. Let them do it themselves. You have no choice.

INFLUENCE or ‘I’

Influence or ‘I’ pertains to oriented people who are highly sociable, excellent communicators, warm, trusting and “just want to have fun.” They’re 15% of the population. They are the type of people that make great sales. They jump from one program to another, looking for fun. These are very creative people with magnetic personalities. They want to look at the big picture and don’t want to be bothered with the details.

How To Sponsor an ‘I’

With an ‘I’ person, talk excitedly, be excited. Talk about partying, going golfing; sky diving, scuba diving,cricket and a lot of fun activities. They love having fun, fun and more fun. That’s what they love and want to talk about all the time. “Hey, when you meet me at the dance, I’ll be wearing a Hawaiian shirt. You’ll recognize me. I’ll have a big, funny hat on.” They love to talk about how they will be spending the holidays & their family. They will join your team if you can get them excited and show how it will be fun to do so.

SUBMISSION or ‘S’

‘S’ are patient and persistent people and form about 35% of the population. They’re the analytical type of people. They analyze everything to death. They miss millions of dollars of opportunities because they keep analyzing

They usually delay their actions. They want to proceed at a steady pace and don’t like sudden change.

How To Sponsor a ‘S’

‘S’ believe that they’re the smartest people on the planet. Within 2-3 minutes of talking, you’ll know you have an ‘S’ type. They want all the details of the business.

You can never sell them anything, don’t even try because you will fail. They have to sell it to themselves first. They’ll listen to the conference call. Then they’ll go to the website and check every link. If you have 25 links on your website, they’ll check them all. They will Google, go to YouTube, they’ll read all the testimonials and the articles. Don’t try and go too fast. Give them all the information. Be upfront. Answer all their questions. Give them more websites to visit for information.

If you call them to answer questions, they will get upset. They will perceive you as being too pushy. Let them analyze the information at THEIR pace. In a week or two, they’ll call back for more information or be ready to start. That time, they already sold the idea to themselves and decided that this is the perfect business for them. If you are patient, you will win them over.

COMPLIANCE or ‘C’

‘C’ adheres to rules, regulations and structures. They make up 35% of the population. They are nurses, schoolteachers and scientists. They work from the heart. They have time for everybody but not for themselves. The ‘Cs’ have built some of the largest organizations in network marketing …That is WHEN they have the belief that they can do it.

How To Sponsor a ‘C’

‘Cs’ don’t want to be sold. They don’t like pushy, aggressive salespeople. Slow down the pace when you talk with a ‘C’. Contain your excitement. Lower the volume. They see the excitement as hype, and that you trying to sell them something. Don’t tell a ‘C’ about making $20,000 a month, because it will turn them off. Instead, talk less about business. Steer the discussion towards their family, children, and their holidays. They love a compensation plan where you can put people under people and work in depth. They are best in any type of “infinity” plan that pays them to work deep. They love “Spillovers” in matrix plans.

TO SPONSOR YOU HAVE TO BE LIKE A CHAMELEON. YOU HAVE TO UNDERSTAND AND CHANGE COLOURS TO SUIT THE PERSONALITY TYPE

May 27 2018

How to Become Center of Influence in Your Network

Wealth Creation Academy Leverage, Wealth Creation grow your network marketing business, network marketing strategy, network of people, start building your network 0

Always remember that you are the center of influence in your network.

center of influence networking

Even if you have a great dream-team, you remain the leader of your team that will exert the key influence in creating your network.

Personality Traits

You have to develop the traits that help influence your network: you have to make yourself immensely likable and radiate positive energy, and your personality and eye contact should radiate warmth and friendliness. Develop a personality that is always looking to help others grow in whatever their endeavor or goal may be in life, and always be willing to give and add value without any hope of reciprocity—that will make your influence grow.

Integrity

Integrity, integrity, integrity. There is no substitute for integrity. Never promote an idea, service or goods to your network that you are not using or have doubts about. You cannot fake and build a network. Be yourself and act honestly. You will attract the right kind of people into your network, which will help you grow in leaps and bounds with their support.

Be Ethical

Ethical leverage is essential in networking. You have to use your contacts wisely. If you try and use your contacts without thought of return on everyone’s time and effort, then you may succeed in lifting your load, but your strategy, in the long run, will fail. Your network will collapse.

I get hundreds of emails every month from internet marketers trying to promote affiliate products. It is very easy to find out a fake promotion coming from a person who has never used a product or has very little knowledge about it. I immediately unsubscribe from the list of those who try and promote such products. On the other hand, I continue to be on the list of those who email me information that is of value to me and, at times, buy products on their recommendation.

Fundamental Rules of Networking

The power of leverage comes from using your networking skills wisely. There are two fundamental rules to networking:

Pay It Forward- Assist 3 people to succeed and in return of what you do for them, request them to help 3 others. This is leverage.
Share the Rewards- Share the rewards of your success and prosperity with all those who are involved in your network.

If you are honest, genuine and helpful your sphere of influence and network will grow. Your network, if built correctly, will, without a doubt, make you rich.

April 12 2018

Secret to Network Marketing Success that No One will Tell You!

Wealth Creation Academy Network Marketing, Principles, Selecting grow your network marketing business, network marketing, networking 0

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?

Worldwide Reach

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.

Lifestyle Business

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.

April 5 2018

HOW TO MAKE USE OF TECHNOLOGY TO GROW YOUR NETWORK MARKETING BUSINESS?

Wealth Creation Academy Network Marketing, Principles grow your network marketing business, network marketing, networking 0

The greatest leverage you have to grow your business rapidly and with minimum effort is to make use of technology. Internet is changing the way people think and do business. It is also changing the way people communicate and build relationships. You can exchange ideas and interact with hundreds of like minded people around the globe without ever having them meet in the physical world. As a result, numerous social and dating websites have sprung up all over the internet and are gaining popularity.

Network marketing and the internet are made for each other. If you are not using the internet to build your network marketing business, then you are only running on one leg. Through the internet, you can reach people across the globe who are interested in starting their home-based business because of the advantages it offers.

You can now have a home business that has a global reach. The biggest problem is most ordinary folks do not understand this technology and how to reach the target audience to share their opportunity. There are thousands of websites that are being created each day and tons of information that gets loaded in the World Wide Web. It is not only enormous but exponentially grows every minute. The challenge is to reach the target audience with a minimum amount of fuss and expense.

The problem is compounded with the so called ‘Gurus’ who have all the fancy gadgets of ad blasters, blog blasters, banners etc. The idea is to throw in as much as you can into the already- over-expanding information web with the hope that someone will by accidentally click on your website and look at your opportunity. The probabilities of this happening are one in a trillion. It is a total waste of your time, effort and money.

Most of these so-called internet gurus are dishonest people who teach you outdated methods and their only interest is to sell you gadgets that are outdated. Internet is changing so fast that what works today will not work tomorrow. The only aim of these gurus is to lighten your pockets by selling strategies and gadgets that no longer work.

Internet is by far a free and large medium. It is not necessary to spend large amounts of money. All you need is a little bit of education.

You can reach your target audience by creating a niche for yourself. You have to reach out to people who have a problem. You have to offer a tangible solution and build a relationship of trust. It needs integrity and work. Most people look at the internet as a means of making a fast buck with minimum effort. Their greed gets them to the direction of sharks who offer them promise of instantaneous wealth. There are some very simple free strategies. Please read on……..

GIVE AWAY FREE PRODUCT, SERVICE OR INFORMATION AND START A VIRAL FEVER

One of the best ways to establish a new relationship is to give something FREE that will be of value to the client. Everyone loves presents. A free gift works better than any advertisement. It establishes a bond of faith between the giver and the receiver. A gift is from the heart. It speaks of abundance.

People come to the internet for information. They don’t come to the internet to view advertisements. They come to look for quality information. People also hate to pay too much for the information.

I am providing quality information regarding network marketing based on my experience at a very low cost to anyone who wishes to start his or her own home business. I am giving new faith to those who have tried and given up on network marketing. The information I am providing will work for any network marketing company. It is a gift from me to the industry for having given me so much more apart from the financial freedom.

I have met new people and made wonderful friends. It is a gift to the people whom I have not yet met but would like to meet and share my enthusiasm. They are in no way obliged to join my business. It is part of my vision to help people create long term wealth because poverty is the biggest curse on this planet. My mission in life is to help people generate sustainable residual income through proper education.

TIP: THERE IS FORTUNE IN FOLLOW-UP

The final technique I want to share with you is following up. If you have ever heard the term “The fortune is in the follow up…” you would be wise to take this to heart as a gospel truth. If you aren’t following up, you are not building a relationship.

Network marketing as I have explained earlier is all about building relationships, mentoring and teaching. If you do not have strong follow-up system in place, your business will not grow and sustain itself. Follow-up takes time, effort and energy. Most people fail because they do not have a system in place for sustained follow-up.

March 15 2018

How to Build Your Network Marketing Business the Smart Way?

Wealth Creation Academy Network Marketing, Principles grow your network marketing business, How to Build Your Network Marketing Business, network marketing strategy, start building your network 0

Successful network marketing works on this simple model given below:

Number of LEADS you can generate.
Number of LEADS you can CONVERT into your team.
Quality of mentoring and training you can give to your TEAM members regarding the products, business systems and promotions. This will start the DUPLICATION process.
Help new member to be in profit within the shortest possible time to help increase the retention rate.
Develop leadership within the team.

These are five essential steps to your success in network marketing. Most people struggle, because they do not understand the five steps clearly. If, through our training process, we teach you how to improve on your performance by simple 20% in each of these five areas, your business will explode exponentially. People suffer in this business because of ignorance. If you are teachable and learn a few simple things, then you have a huge advantage over a normal network marketer. Your success is guaranteed.

Let us examine these five simple steps one by one.

LEAD GENERATION THE RIGHT WAY

Leads are the life blood of your business. Without leads, you are nowhere. There are two distinct schools of thought here. The warm market leads and leads generated through advertising. Let us examine them at some length because this is very important.

WARM MARKET LEADS

There are very successful network marketers who have built huge businesses only through warm market leads. Warm market leads have some distinct advantages. Firstly, there is already an ongoing relationship of trust. Network marketing is a relationship business. To succeed, you have to build a special relationship of trust with the person you sponsor.

In warm market leads, the relationship already exists and makes your job easier. Secondly it is easier to share your excitement about a product, service or business with someone you already know than with a total stranger. This transference of excitement and sharing of joy is very important in building your network marketing business.

Network marketing works on recommendations and the person who most likely will listen to your recommendations is someone who already knows and trusts you. Most importantly, your warm market leads don’t cost you a dime. Advertising can be very expensive, and you can max out your credit cards yet still not did not reach your target audience.

The problem with warm market leads is the poor conversion rate. This is because you are talking with leads that are not looking for a business opportunity. For most of these leads timing may not be right. Some may be going through change of jobs, transfers, shift of residence, new arrivals in the family and other family issues.

A NO from your dear ones hurts and you feel rejected. The NO can spring from lots of reasons totally unrelated to the business opportunity, and it is definitely not a rejection of you as a person as long as you don’t pester them and make them feel uncomfortable. You have every right to share your enthusiasm for a product and/or an idea. There is no reason to be upset if they are closed to your idea.

Network marketing has been given a bad name by some people who will take NO for an answer. They will badger their contacts with the hope of wearing them down and change their minds. Please remember, everyone will not be as excited about the opportunity as you are because the timing may not be right for them.

You discuss the opportunity with the next person in the list. It is recommended that you make a very long list. A short list will create problem. As you start making money, and your belief in the business goes up, you will find a sudden change in the attitude of your warm market. You will find it very easy to convert them to your cause. People who initially said NO will ask to join the business. This is how the business works. You have to remain calm, consistent and focused regardless of the views of your warm market in the initial stages of your business.

DO NOT TRY AND CONVINCE…….JUST SHOW THE OPPORTUNITY TO MAXIMUM NUMBER OF PEOPLE YOU KNOW. You will win if you take MASSIVE, CONSISTENT and PERSISTENT ACTION

The key to succeed with your WARM MARKET is to start them on the products, and not pitch the opportunity to them straight away! Once you get your family and friends try the products (it won’t cost you that much considering that you can claim tax breaks), and once they see results from it, they will start buying and promoting the products to the people around them because of the benefit they experienced! Some may even join the business opportunity!

You can never run out of warm leads. Once you have sponsored a few people into the business, you have to start supporting them and working through their leads. Sooner than later you will find active network marketers who share the same vision as you and your business starts growing.

COLD MARKET LEADS THROUGH ADVERTISEMENTS

The leads you generate through online and offline advertisement are highly-motivated leads. These people are searching for home businesses. They will look at various options before deciding on the best opportunity. The conversion rates from these leads can be fairly high. You can build your business very rapidly through advertising. The best part of it? There is very little or no rejection factor as in the case of warm leads.

One thing I can warn you from the very start is to NEVER EVER BUY LEADS because these leads are sold over and over again. The only thing you will achieve is to pay for these expensive leads with no returns to your business. To be successful in the business, you have to generate your own leads. There are no SHORTCUTS.

The problem of leads through advertising is not only the prohibitive cost but also skills needed to reach the target audience. If you choose the advertising route, you will be competing against big companies for attention.

If your advertisements are not focused and targeted, they will not reach the right people. Either you have to become a master at marketing which includes developing as great writing skills in advertising, knowing the right medium to advertise to gain maximum impact and also know how to monitor the cost returns on advertising.

Without proper monitoring systems in place, you will blow up your budget without any tangible returns. If you are advertising on the internet, then you have to develop special skills to market on the internet. Most average people do not have the necessary skills to advertise effectively, and if you are one of them, then you can spend thousands of dollars and achieve very little or no results.

There are unscrupulous upline leaders who will ask their members to embark on expensive advertising to grow their business even when they don’t have specialized knowledge to guide their team.

Another problem with generating leads through advertisements is that there is no relationship with the lead. To succeed, you have to build a relationship of trust. This takes time and effort. The problem is compounded because the leads that you generate may not be from your local area. You have to set up systems for long distance support by taking advantage of the modern day communications and the internet. The support systems have to go in place before you start to advertise. You will need to budget the additional website and communication costs.

There is no doubt that advertisement can greatly help your business to grow rapidly, but you have to master the art to succeed. If you are a beginner, it is advisable to stick to the warm market leads until such time you reach the breakeven point in your business and you are in profit. You can then start slowly by advertising first using free resources.

There are various avenues of free advertising, and we shall discuss some of them later in this book. As your income from business grows, and skills improve, you can slowly start experimenting with paid advertising. Remember, every dollar you spend on advertising must be monitored. You should have positive results in building your business or you are simply wasting money.

The most effective leads you can generate for your business is through internet marketing. If you are not using internet to generate leads, then you should start doing so without delay. The best part is that you do not need paid advertising to generate leads on the internet. You can use social media, even article and video marketing to generate leads for free.

MLMLeadsSytemPro is one of the best programs on the internet that teaches you how to generate leads and position you as a market leader. It is based on the principles of attraction marketing and funded proposal. Attraction marketing was first propounded by Mike Dillard through his book and Magneting Sponsoring system.

According to attraction marketing, you should not chase people into joining your business. You have to position yourself as a market leader so that others want to follow your prosperity model and join your business.

Funded proposal means that you make money from leads that do not join your business to cover the costs of your advertising. Let us say it costs you $1 to generate a lead. Most of the leads that you generate will not join your primary business as it may not be suitable for them or they may be engaged in another business from which they do not wish to shift their focus. The advertising money that you have spent will be a loss to you.

If there is a way for you to sell some products to these leads to help them with their business effort, then you will not only recover your advertising costs but also make a small profit. Let us say that you earn $3 from every lead you generate through your marketing system that costs you $1. This small profit will enable you to scale up your advertising budget progressively. This is what MLMLeadsSytemPro is designed to do for your business.

For someone new to the business, the best option is to first work with the warm market leads. Next step is to generate leads by adverting through FREE resources. Paid advertising should be attempted after having gained the necessary skills in setting up the organization for long distance support and once the business is in profit. The only exception to this rule is if you already have expertise in advertising or have deep pockets to hire an expert.

February 28 2018

How to Choose the right Network Marketing Company to Join?

Wealth Creation Academy Network Marketing, Selecting grow your network marketing business, How to Choose the right Network Marketing Company, network marketing company 0

Majority of people choose a network marketing opportunity without any research. This is because you are approached by a family or friend about a business opportunity and you joined because of your love and trust in the relationship. In 99% of the cases, the person who is sponsoring you has done no due diligence regarding the company. It is like blind pushing the blind. The result is invariably a catastrophe.

Remember what you are getting into, is a business. It is about money. It is about your time, effort and sweat. It is about your future and the future of your loved ones. It depends upon the quality of your decision. So, please choose carefully and intelligently.

THE MLM COMPANY YOU CHOOSE MUST HAVE THE MANAGEMENT WITH RIGHT EXPERIENCE AND INTEGRITY

This is very important. The reason why Warren Buffet is the most successful investor is because when he buys stocks of a company he looks at the men behind the company. It is always people behind the company who are the wealth creators. If the management is weak or lacks integrity, the business will fail. So when you decide to join a network marketing company, do some research first on the people behind the company.

It is the distributors who are the real stars of the company. If the distributors are not present the company will have no sales. Yet, there are companies who look to compensation plans that increase the company profits at the expense of the distributors. They look to create breaks in the compensation plan so that they can stop paying distributors if they become too successful.

People join network marketing companies to create residual income. However, when they wish to retire, some companies feel like ‘why should we continue paying them if they are doing no work?’ So they look for ways and means to terminate the contract. They insert clauses in the fine print of terms and conditions (which nobody reads at the time of becoming a distributor) that the company has the right to terminate the contract if there is no ongoing sales or sponsoring, or if the person does not attend the company sponsored meetings. Sometimes, they reserve the right to terminate the contract without assigning any reasons at all.

Companies also add a clause that you can’t be a part of class action lawsuit. In other words, you can’t even sue them if they terminate your contract. This is like someone taking away the income that you’ve achieved through a lifetime of work. It is an outright stealing. Such actions speak of very low integrity. Never become part of such a company. Read the fine print in terms and conditions before signing up to become a distributor.

The management must have the experience to take the company to a new level as the business grows. They must have the ability to guide the company during hard times. If the company fails to adapt and survive the changing times and economic conditions, so are you. If the company performs, well then your business will grow exponentially.

Integrity and experience of management is very important to your success, and you should never compromise this aspect when selecting a company to join.

TIMING IN JOINING A MLM BUSINESS IS OF GREAT ESSENCE. YOU CAN EITHER RIDE THE WAVE TO SUCCESS OR BE DROWNED BY IT

Right timing consists of two separate factors and these should not be confused. First, is the right timing in the industry. Second factor is the right timing in the company. We will discuss them in details. If you get one right and the other wrong, then you will not get great results. If you get both the timings right, then you will ride the wave of success.

TIMING IN THE INDUSTRY

Each industry has a cycle. Some product cycles are very long while other product cycles are very short. For instance, few years back, there was great excitement regarding video emails. Some network marketing companies called it the wave of the future and started enrolling distributors. Today, video emailing is free on the internet. What happened to the profit margins of these companies? Obviously, they never survived. What happened to all the effort by the distributors? ZERO outcome. They lost their time, effort and money in promoting a product that has just a life span of two to three years only.

This doesn’t mean that you should avoid technology companies. Many internet companies have the technological edge and can give you a very high residual cash flow within a very short frame of time.

High technology products have very high returns but relatively short window of opportunity. So when you join a technology/ internet company, you have to access the life of the products and enter the business at the right time.

To succeed in network marketing is to be in an industry that preferably has a long product cycle that will not go out of fashion or become redundant with technological change. The most successful products in the network marketing business have been those related to the health and wellness industry. These products are timeless, as the need to live longer, look younger and be healthier will always remain. It is the basic human need. It will never go out of style.

The timing for health products is also perfect with baby boomers coming of age in their late fifties and sixties. For the last six decades, baby boomers had determined the industry trends. In the next two decades, the main concern of the baby boomers will be their health. Health, which is a $20 billion dollar industry today, is expected to explode to trillion dollars in sales on the wave of the baby boomers by 2010. Timing, therefore determines when to join network marketing companies promoting health products. The big wave is set to go into motion, and we should ride this ‘health’ wave or we will miss a great opportunity in history.

When the timing is right, NON-network marketers will take your product to the marketplace. The timing means NOW. Not 4 years earlier, not 4 years later. Timing will make your work ten times easier. Millionaires were made in network marketing because of timing alone. Learn to ride the wave!

One warning though about the health industry before you rush to join. The retention rate in this industry is around 6% to 8%. It may be slightly higher if you have a very strong training program in place. This is because profit margins when compared to internet-based opportunities are much lower. It also takes far greater effort to build a network in a non-digital product company.

In some of the internet-based companies that I am involved with, my retention rate of affiliates is 100%. This is because my affiliates make money from day one of joining the business.

Nothing is permanent in life. Each and every product has a life cycle. You have to weigh the product life cycle, profitability and retention rates of affiliates before deciding on which company to join.

TIMING IN THE COMPANY

Once you have selected the industry, then you have to look for a company within the industry whose timing is right for you to join. How can you gauge the timing in a company? It is difficult, but below are some tips:

Most companies fail in the first year or two of their operations. You’ll waste a lot of time, money & energy if you get in too early.
You’ll waste a lot of time, money & energy if you get in too late. Momentum growth period of these companies occurred years ago. These companies are household names maybe with products using out dated technology. They are like dinosaurs facing extinction. You’re will fight a real uphill financial battle to sponsor people into these companies.

The best time to join a company is around 3-5 years for physical products and 1-3 years for internet-based companies upon their start up. By the time, it has proven its staying power and about go into momentum growth.

If you can get the timing of the industry and the company right, and also the other parts of the formula correctly, then you are perfectly positioned to ride the momentum wave to wealth.

THE PRODUCT HAS TO BE REMARKABLE

If there is no EMOTIONAL attachment to the product, you will not succeed. You can never recommend a product to someone if you are not emotionally involved with it. Network marketing is a referral-based marketing. You can never transfer your enthusiasm to someone if you don’t have feelings for the product.

Network marketing works with niche quality products that have special qualities that need to be sold through transference of knowledge and enthusiasm. Network marketing does not work with ordinary products that have little or no intrinsic value.

When you promote multiple of opportunities and products, you undermine your network. If you try to appeal to everybody with your multiple streams of products & services, no one will take you seriously. This is because you have failed to create an identity in their mind. The net result is…

No trust. No loyalty. No network.

Loss Of focus = Loss Of Power. You ruin your quality perception, because to consumers, Specializing = Quality. You will struggle to market numerous unrelated services and products that you don’t know well. You lose competitiveness and efficiency, and as a result, you will get a smaller market share. You better do your research! Choose the RIGHT opportunity and product, and FOCUS ON THAT ONE!

If you are focused, you will attract the customers & associates you want. They will be excited because they feel that they are a part of something big. It will create a belief in their minds that you’ll be a big success. A specialist always knows more and so as better quality product always wins over hundreds of mediocre products and services. You will win if you remain focused in a quality niche market.

The product has to be so remarkable that people should be willing to buy it even if there is no compensation plan involved. The product has to be priced right. If you start explaining why the product is so expensive, then you will become a salesperson rather than a network marketer.

In any network marketing organization, there will be around 80% of the people who are users only of the product and will never build the business. If the product is not remarkable or priced correctly, then these people will stop using the product. The business simply cannot succeed if people do not find a great value in the product.

The product should not be readily available in the super markets and neighborhood stores. It does not make sense for someone to buy a product that can be bought cheaper from a store next door. The product has to be unique and remarkable. The product has to be difficult to replicate. If everyone starts replicating the product then the price starts to go down, and the margins get squeezed out. The company will go out of business and so are you.

Most importantly, the product should be a consumable type that people use it every day and they need to buy it every week or month. In this case, if there are no volumes in product sales/consumption, then there will be no income.

THE COMPENSATION PLAN MUST BE EQUITABLE, JUST AND WORK WITH NUMBERS

The most important thing about a compensation plan is that it should work with numbers. If it works for only 5% of the people and not for the other 95%, then the compensation plan will not succeed.

The business plan has to be equitable and just. Newly sponsored people will remain in the network, only if they see the plan working for them. They should not only breakeven but be in profit within the shortest possible time.

You can lead people, only if you can take them one step closer to their dreams. You have to show them small successes before they are prepared to take the long march with you. You are doomed from the very start if the plan does not work with numbers. The plan has to work for average or ordinary people. This is because most people who join your business are in the average and ordinary level.

The business plan has to work for average part-time workers who make the numbers. If the plan does not work with numbers, then simply walk away.

Network marketing statistics show that an average distributor sponsors 2.7 persons into their home business. This means that any compensation plan that requires more than 3 persons in their frontline will struggle to survive. Binary plans that require only two persons to be put in the front line have proved to be most successful in the industry.

Any successful network marketer will tell you that the main source of his income in network marketing comes from two to three people in his team. If this be the case, then compensation plans that are too wide just do not work. Binary plans cause spillovers that support the effort of the new members in the team.

The new members feel great when their upline places someone below them in their team. This helps build relationships that are essential in network marketing. Always choose a plan that does not force you to go wide and rewards you to work deep. Working in depth helps create a relationship with your team members.

Any compensation plan that rewards recruiting into the system is illegal. Most likely, such plans are illegal pyramids with no tangible product in the offing. In illegal pyramids, the moment you stop recruiting, your income will stop. Such companies camouflage their intentions by selling products that have little or no value. Sooner or later, authorities will close down these companies for illegal practices. You should never become part of such scams and lose your hard earned money and effort.

For a network marketing company to be ethical and legal, the money in the compensation plan has to flow out from the sale of products. The joining fee for such companies is normally very low because there is no money to be made from sponsoring people. This helps in sponsoring new people into the business because the startup cost is very low. Ethical companies succeed on the basis of a strong product that people want to buy and use.

A good business plan should be backed by a generous contribution from the company for the efforts put in by the distributors. A method to check if the compensation by the company is really generous is to check how many people need to be in your network to generate an income of $10,000 per month. If the figure runs into thousands of distributors, then it will take a long time for you to generate any decent income. There are companies who only give back 15% to 25% of the turnover to the distributors. You will put in twice the amount of effort to build your business compared to a company that pays out 40% to 50% of the sales turnover.

Another important feature of a compensation plan is that the points are non-flushing. As long as you are active in the business, your group volume points should never be lost and will carry forward week to week until such time you qualify for commissions. This is a big advantage compared to many compensation plans wherein your points get flushed out at the end of the month if you don’t qualify for commissions.

Publicly- traded companies have the advantage as the details of their finances are available for public scrutiny. On the other hand, they suffer the disadvantage of high operating costs when compared to privately-held companies. These costs get added to the price of the product, and as a result, the compensation paid to the distributors gets squeezed out.

Privately-held companies operate with much lower overheads and can take business decisions more quickly. This makes them more profitable. However, you will find it difficult to learn about the state of their finances as these companies are not obliged to go public with this information.

CHOOSE AN OPPOPTUNITY WITH SYSTEMS FOR DUPLICATION

Why most businesses fail, is because they do not have systems in place. On the other hand, businesses with mediocre products but with great business systems always succeed. Take the example of McDonald’s. They do not make the best burger in the business. Even your mom will make a better burger. McDonald’s is the largest burger chain in the world simply because it has the best business system.

This is also true for network marketing companies. Check the business systems of a company before you decide to join them. Go for a system that respects people and attracts like-minded individuals.

To succeed in this business, you need a proven and tested duplication system. The system has to be very simple, or it will not be duplicated by ordinary members of your team. Everyone that you sponsor and those they sponsor need a step-by-step system to get their business off to a fast start. These systems can be online, offline, one-on-one, or in cold market, warm market, retailing, recruiting or becoming a mentor to their personally-sponsored people.

The system must also help to develop the individual members and build leadership. A person does not need all the techniques to be successful but the system should make these available to choose from that is best suited for his style of business.

To the best of my knowledge, there is no company in network marketing that provides a comprehensive, realistic and affordable system to help you build your business. This is because it is the job of the network marketer to build his own business that is best suited to his style. The company provides you the backup system so that stocking, distribution and customer complaints/queries are taken care of. They pay you generously to spread the word and bring in new customers.

Every company has individual groups of entrepreneurial reps who put in place a system to help you build your business. You cannot succeed without the help of these people and the support systems they provide. If you want to leverage your time and effort you have to join one of these groups to succeed. They help not only you but the people you sponsor into the business. Don’t join a group unless they have such a system in place.

There is a book I have written on this important subject of ‘How to Find a Network Marketing Goldmine: Researching and Evaluating MLM Opportunities’ that you might like to read.