It is difficult to think of online home businesses without mentioning multilevel marketing opportunity, also known as network marketing. Given the continuous growth in technology, earning a living while working online is the new trend. This is mainly due to the fact that online businesses are cheaper and easier to start compared to conventional businesses. More so, with a home online business, you are your own boss. You decide on the time to start working and when to stop. You are the one calling the shots.
Big companies and firms have realized the importance of adopting technology not only as a way of reaching out to a wide range of clients but also to market their products and services. This explains why your social media accounts keep exploding with invitations to online shop sales. Other invitations include being offered a job opportunity to help market a company’s products as well as building a sales team. It is important to note that, all these are part of multilevel marketing techniques used by these companies.
Well, most people do not like the idea of getting into network marketing. The pushy and sales tone from the guys already in multilevel marketing (MLM) may have greatly contributed to the dislike by the general public. Some of these guys might even coerce you into joining their sales team. Besides, the way these guys put it makes MLM sound like a ‘get rich quick’ scheme which is not the case.
Multilevel marketing opportunities can indeed make a fortune for you. Yeah, you heard it right! You can get rich with MLM. Like any other successful business, you must be ready to put in some extra efforts and of course patience. But before starting out on building your network marketing empire, it is important to understand in depth, what MLM entails.
How does Multilevel Marketing work?
Basically, MLM is a marketing strategy used by companies to increase the sales of their products and services. These companies recruit distributors or in other words sales personnel whose job is to sell the products to clients. The good thing about MLM is that as a distributor, you can sell the products online conveniently from the comfort of your home.
Now here is where the extra efforts come in. The amount of money you earn depends on the number of successful sales you generate plus those made by your own sales team. For maximum gains, you will be required to create a huge team of sales team otherwise known as the downline. Then your recruits will have to build their own team too so as to earn and the thread continues. Generally, all participants generate income from sales of MLM company’s products as well as their multilevel recruits.
Majority of the people believe network marketing companies are pyramid schemes in disguise thus shunning away from multilevel marketing opportunities. However, the truth of the matter is there is a big difference between the two. Having understood how MLM works, let’s have look at pyramid schemes.
You are just about to leave the grocery store when you bump into your college friend. The last time you saw this guy, he was all beaten up and bruised by life trying to make ends meet. Now he is in a clean suit dangling his BMW brand new car keys. After a chit-chat, you are curious to know what kind of money minting business he got into. Is he into drug dealing or money laundering? He opens up and tells about this company he’s working for. He says he is a salesperson selling health supplements and he can get you in. Excitedly you agree to pay the one-time sign-up fee and the cost the merchandise.
Months later you have not yet sold even a single merchandise leave alone making your money back. Turns out selling health supplements is not as easy as it may sound. You then realize almost everyone in your neighborhood got the same products, meaning it’s hard to sell. Looks like you have been ripped off by a pyramid scheme.
To break it down here’s how pyramid schemes work. Pyramid schemes too run on multiple levels too, simply the more you recruit the more you earn. Unlike network marketing companies pyramid schemes emphasize more on recruiting distributors rather than selling the products. This means every time you recruit someone you get some sort of ‘bonuses’ as commission. You are also charged a start-up fee for joining including buying a starter kit or the health supplements in our case. More often than not the products being sold have no real value on the market no wonder these schemes focus too much on recruiting distributors.
Building a successful MLM team
As mentioned earlier building network marketing team requires much effort and time. Forget all the hype about making quick money and high-pressure motivational events that are associated with multiple level marketing. First of all, you must be willing to accept that recruiting a team is part of building your ‘business’. As much as you do not earn by simply recruiting, your goal here is to boost the sales of the products which consequently increases your earnings.
Make use of the social media platforms to sell your products as well as a tool to recruit more participants. Social media provides an opportunity to meet and interact with people from different places. And if the MLM company you are working for can accommodate clients from a different locale other than where it is based the better. Meaning you can have a sales team consisting of members from another state or country.
Finally get be bold when approaching prospects. You already made the first bold move when joining MLM as a distributor, now it’s time to make something out of your new business venture. Your composure and courage go a long way in determining the success of your sales and winning a recruit into your team. Your confidence speaks out loud that you are in the right business.
With the right products and team, network marketing can be a success. Make sure you are also working for the right MLM company, to realize the full potential of multilevel marketing opportunity.