Thursday, August 29, 2013

Anybody Can Make A Fortune In MLM - The Myth Or The Truth?

By Dr. Grazyna Pajunen


Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit.

This strategy involves development of sales and business skills, as well as leadership skills in order to succeed. Since we live in an era where the Internet is the number one tool for most businesses, Internet marketing skills are also very important for long term success. Seven tips that are essential for building a successful network marketing business fast are listed below:

1. The first and the most important item is to determine your WHY. Why do you want to build this business? Where are you going to be in five years if you continue to do what you are doing now? Will you have a lifestyle of your dreams? Will you have enough time and money to do what you want to do?

2. It is essential to choose the right company

Thousands of new network marketing companies are established each year, but more than 90% of these companies are out of business in just one year. It means that even if one builds a successful business fast, the company will not be there to pay the promised "residual income". How to choose the right company?

2.1. The company that you choose should be financially stable

The company needs to be at least close to 2 years in business and the best company would be the one that is debt free.

2.2. Consumable and unique product preferably patented that most people need or like.

This type of product can be easily sold to the end consumer and the reorder rate is going to be higher. Each month you will start your business from the volume that you finished the last month. This can help you to build your business really fast.

2.3. Timing

There are four phases of growth of any business: formulation, concentration, momentum and stability. Richard Poe in his book entitled "Wave 3: The New Era in Network Marketing" wrote "...the phase with the most rapid growth is the momentum phase, which occurs after the company has exceeded $50 million in annual sales. This is the moment when exponential growth kicks in, when fortunes can be made... by these lucky few who got into the company before it went into momentum". This means that companies that are well established, like Amway, are already in saturation and while one can still make money, it is difficult to make a fortune.

3. Paying Plan

There are different compensation plans for different MLM companies. Make sure that your company is not promising to pay over 100% , because this company will not stay in business very long. Very few network marketing companies can afford to pay over 60% of their revenue. The best way is to determine how much would you like to make a month and find out what you need to do to achieve it. Then, with a help of your sponsor, create a feasible plan of action to achieve this goal.

4. Training

Training is very important and it basically consists of 3 levels

4.1. Sponsoring your warm market locally and long distance. It is necessary to have a proven and duplicatable system that everybody can follow.

4.2. Working with a cold market. This is much more difficult, but it should be taught to distributors who already exhausted their warm market.

4.3. Internet Marketing strategies. This is the best and and at the same time most advanced strategy. It takes time to develop it, but it creates the most lucrative and stable business. The seven videos that show how to generate an endless new stream of distributors ready to join your business is available online, for a limited time only, for free.

Download your videos while you can.




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