Starting an online business in network marketing can seem incredibly daunting at first — that’s why I’m using this platform to share my top network marketing tips 😉
There are a lot of misconceptions in the network marketing industry and many who question the legality of the way the business is structured, and even more who write every network marketing business off as a pyramid scheme — which is Class 2 fraud — before they’ve done their own due diligence.
As for what I think, well experience has taught me that there is always opportunity for those who can keep an open mind, do their due diligence when evaluating and choosing the right company and put in the hard work that is required to succeed!
In this article we’ll be exploring what network marketing is, how it works, what the various business opportunities within it are and my top 9 network marketing tips!
Read on so that you can learn how to succeed in network marketing in 2020
What is Network Marketing?
Starting an online business from home has been made easier than ever before with many different network marketing opportunities available.
Network marketing is a business model that relies on direct sales person-to-person by independent representatives, who can do this from home or anywhere in the world — who doesn’t want to work on a beach sipping cocktails?!.
Often a network marketing business it will require you to build a network of business partners or salespeople who also sell products.
Ok, so at this point you’re probably going “Oi, hang on, isn’t network marketing a pyramid scheme?
This is usually the first thing that many people ask regardless of what they really know about network marketing themselves.
With that said, there are loads of reputable network marketing companies out there and it’s important to do your research first to make sure that you are in fact buying into a legitimate business model and not a pyramid scheme.
A good example of a pyramid scheme is the notorious Ponzi scheme, these businesses are illegal (super dodgy) and don’t usually involve the selling of products.
Instead, the participants’ source of income will depend solely or predominantly on recruiting others to join.
The person at the top will make all the money and if there are sales of products or services, this will have little or no impact on the earnings.
Network marketing is actually an upside down pyramid wherein everyone starts at the bottom, but they can all get to the top!
How Network Marketing Works?
Network marketing can be referred to as a variety of names, such as:
- Multilevel marketing
- Cellular marketing
- Affiliate marketing
- Consumer-direct marketing
- Referral marketing
- Home-based business franchising.
Irrespective of the names it’s given, network marketing is ultimately a business model that depends on a network of distributors in order to grow a business.
According to Investopedia, “companies that follow the network marketing model often create tiers of salespeople—that is, salespeople are encouraged to recruit their own networks of salespeople.”
“The creators of a new tier (or “upline”) earn commission on their own sales and on sales made by the people in the tier they created (the “downline”). In time, a new tier can sprout yet another tier, which contributes more commission to the person in the top tier as well as the middle tier.”
Therefore, your earnings within the business will depend on recruitment as well as product sales.
Best Network Marketing Opportunities
There are a couple of different opportunities within a network marketing business.
According to The Balance Small Business, this business model “typically involves using three basic types of systematic strategies to make money: lead generation, recruiting, and building and management.”
Types of network marketing opportunities can include single-tier, two-tier, and multi-level.
Single-Tier Network Marketing
Single-tier network marketing is pretty simple and only requires you to sign up for a company’s affiliate program to sell their products or services.
There is no recruiting of other distributors, and all of your pay comes from direct sales. The widely-recognised beauty company, Avon is an example of a single-tier network marketing company — before they became a multilevel marketing company.
How it often works with online affiliate programs is you get paid for the traffic you drive to the affiliate’s website. Pay-per-click (PPC) and pay-per-lead (PPL) affiliate programs are additional examples of this model.
Two-Tier Network Marketing
Two-tier network marketing requires some level of recruiting, but your profits aren’t solely dependent on it.
The Balance Small Business explains, “you can get paid for direct sales (or traffic you drive to a website) and for direct sales or referred traffic made by affiliates or distributors you recruit to work under you.”
Ken Envoy’s Site Sell is a good example of a two-tier network marketing model.
Multi-Level Marketing (MLM) is a distribution-based marketing network that contains two or more tiers within the business model.
MLM businesses are essentially a form of direct sales home business in which independent representatives sell products or services from a company to an end consumer.
How the multi-level aspect of this works is that each representative or agent who is able to recruit and train other representatives to start their own business can earn a commission on their reps’ sales.
Income and profits earned in this model come from the commission earned on personal sales, as well as a percentage of the sales earned by other reps recruited by you.
There are some MLM programs that allow you to make money five or more tiers deep, which may result in potential incentives and bonuses for recruiting.
Some examples of MLM businesses include Amway and the company I’m a part of, Forever Living.
I found huge success with starting an online business with network marketing, the MLM business model worked incredibly well for me and I’ve been building a successful global business for the last 14 years while I was a single mum — it’s given me more than I could have ever imagined.
But, not all network marketing companies are made equal…
There are a couple of questions to consider when answering “What is the best network marketing company?”:
- Has the company been around for at least 5 years and what is the track record of the company’s founders?
- Is the company well-capitalized?
- Is the company a member of the Direct Selling Association?
- How is the business being pitched to you? Is the focus on making money by selling products or by recruiting others?
- Does it come across as being a get-rich-quick scenario or are they honest about the work you’ll have to put in, in order to make profits?
- Does the company offer products or services that are unique?
- Is there a genuine need for the product or service?
- Is the product or service trendy or a fad?
- Do you personally feel excited about the products, like they are something you would actually use?
- Do you think people you know would be enthusiastic about the products or would they call you a nutter?
- Can you generate immediate income or do you first have to invest thousands before you can only make money months down the line?
- Does the marketing system take full advantage of technology?
- Is the person who is introducing you to the business opportunity committed to your success?
- Can you build the business part-time while you still earn your full time income?
- Is this a business you can enjoy working in and have fun with (let’s be honest, this is important)?
Not sure where to begin answering these questions?
Feel free to reach out to me and learn more about the opportunity my company can provide you and your family!
Top 9 Network Marketing Tips On How To Network Like a Boss!
1. Know Your Why
This isn’t #1 out of my 9 network marketing tips for nothing…
To thrive and be successful in anything in life, you must know your “why.”
This is your driving force and motivating factor for making something happen, otherwise you won’t be bothered to get it done.
What are your reasons for considering starting an online business in network marketing?
Is it because you are looking for financial freedom?
Want to be able to spend more time with your kids?
Looking to travel the globe and have greater flexibility with your time?
↓↓↓ Get super clear on what your WHY is and then commit to it ↓↓↓
2. Get Clear On What Need Your Product Or Service Is Fulfilling
It’s important to identify the need or want that your product or service can fulfill.
For example, by someone joining your network marketing business you can help them address a need for additional finances.
Maybe the health and wellness products you sell can help people with their aspirations to stay healthy and look after themselves.
This is going to help you hone in on the reasoning behind everything you do and how it can impact others’ lives.
3. Identify Your Target Market
Your target audience are the people most likely to have the above need or want.
A ‘spray and pray’ approach where you sell to everyone is not going to work, period.
As an example, my target audience are mums that are either stay-at-home or full time employed who are looking to make an extra income and have more time with their family.
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4. Decide On A Goal
Now that you have determined your why and you have your big dream outlined, it’s time to set some short and long term business goals that will help you reach your dream.
This is something your upline or sponsor (the person you signed up with) can help give you guidance on.
5. Be Genuine And Ethical
Out of all the network marketing tips I have to share, this is possibly the one that makes or breaks most careers in the space.
If you can show up with integrity in everything you do, be genuine and be ethical and people will trust you!
For many years direct selling and network marketing has received a bad reputation due to reps who have used hype — and oftentimes deception — in order to get new recruits to sign on.
It’s from this behaviour that many people are led to believe that MLM companies themselves encourage this behavior when in all honesty, they simply don’t!
Legitimate MLM companies like Forever Living expect you to be honest in how you deal with customers and potential recruits.
If you truly believe in a product and the benefit it can bring to a person, your genuine enthusiasm and the quality of the product will be enough to promote it.
Avoid making any over-the-top or exaggerated or false claims and just be authentic and true to yourself!
6. Don’t Pester Your Friends and Family
The absolute last thing you want to do is piss off (excuse my terrible French) any family or friends and have them call you crazy because you won’t leave them alone.
There’s nothing wrong in sharing with them what you’re doing, but if they’re not interested, then take “no” as “no” and move the hell on.
These can often be the people who are initially very skeptical, but once they see your success they can be more open to the opportunity.
The proof is all in the pudding!
7. Sponsor, Don’t Recruit
One of the great advantages of building an MLM business is the potential to bring in new business builders and profit from the sales they make in their business.
Now you may be thinking, “isn’t that using others you selfish sod?”
While it may seem like this, in reality you’re being rewarded for helping others succeed.
But in order for them for them to truly succeed, you have to take your role as being a trainer and leader seriously, not just rack up as many recruits as possible — quality over quantity!
The focus should always be on the success of those you help in the business, not solely on you.
8. Learn How To Market And Create An Action Plan & Strategy
The best leads will always be the ones you find yourself and who are genuinely interested in your product or service.
If you’ve ever wondered how to market your network marketing business, here’s a couple of ideas (that can be seen as a bunch of extra network marketing tips) below of where you can get started network marketing online and in person.
- Create a website:
Take a look at the policies of the company you’re working with to see what they allow regarding websites. I have my own website as Forever Living allows us to do that, which is really helpful.
- Build an email list:
The first step is creating awareness and getting people to take an interest in what you have — by visiting your website, for example.
Next is to get those leads to subscribe to your email list. You can do this by getting them to sign up by offering them something for free — like what I’m offering you below:
- Write articles or blogs:
You could either write content related to what you’re offering for other websites or for your own if you have one or are planning on creating one.
Don’t just write with a hard sell, the purpose is to offer your audience golden nuggets of information that can help or benefit them from reading it.
- Network marketing on social media:
Just posting about what you’re offering may not garner much results from social media.
You will have to be a bit more creative and strategic to your approach.
An example would be, if you are selling wellness products that help you lose weight, share before and after images that show results, or create videos that depict how you use a certain wellness product in the kitchen when you’re cooking.
I’ve actually written a book all about how I used social media to double my business.
Get your copy here!
- Develop a referral program:
You will find that many people you initially talk to won’t be interested in buying right away, but they may know people who would be keen on what you’re selling.
Happy customers may want to share your product or business, so a great way to leverage this is by creating some sort of referral program which can give people incentive to refer others to you.
- Go to events or create your own and network:
Get out there and meet people at any different networking events that are happening in your area.
Another option is to host your own events, like a pamper and Prosecco evening where you invite people and ask them to bring a friend with them.
This is a great way to meet new people and who doesn’t love networking with some wine?!
9. Stand Out from Other Distributors
A challenging aspect of starting an online business in network marketing can be convincing prospects to buy or join with you as opposed to the other reps they may know…
How to be successful in network marketing? Well, you’re all selling the same stuff at the end of the day, so it’s incredibly important to differentiate yourself within the market.
Ultimately people will gravitate towards you for your “uniqueness” and if they feel they will get something more with you.
You want to give people a reason to choose you over any other reps.
Thinking of Starting
An Online Business in Network Marketing?
Starting an online business in network marketing is not for everyone…
Getting a retail income is very simple and I can help you get up and running in just a few hours a week.
Developing a team, on the other hand, takes work, dedication and consistency, but if you have a drive to succeed (like with anything in life) then there’s no doubt that you will do well.
I sincerely wish that you enjoyed my network marketing tips and that any apprehensiveness you may have had with regards to network marketing has lessened somewhat.
I really do hope that you feel more open to the prospect of giving this business model a go!
It’s given me so much and it can do the same for you if you want it enough.
Please leave your comments below and feel free to ask me anything you’d like to know about starting a network marketing business with Forever Living.
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