Every day, thousands of people around the world are trying to discover ways that could provide them with the opportunity to receive a basic or additional income. To do this, they have to look at the vacancies that have appeared on the labor market or study certain ways to earn money.
To help solve the issues of generating income for each person allows network marketing. Reviews of professionals in this field clearly indicate that success can only be achieved if the right steps are taken at the start of a career in MLM.
It's hard to explain what network marketing is in a nutshell. Some people, when faced with such companies, call the schemes they created for earning a real “scam”. But there is also an opinion to the contrary. According to him, network marketing receives reviews as the only opportunity to open your own business without the initial investment of large sums of money in its development. So which of these two opinions is correct? Forto understand this, you need to understand the question "Network Marketing - what is it and how does it work?".
Only after collecting detailed information about the MLM system, each person will be able to come to certain conclusions and decide for himself whether to work in this area, or leave it for others.
What is MLM?
This abbreviation stands for: MultiLevel Marketing. And this means nothing more than “multi-level marketing”. It is also a direct selling system.
Network marketing (MLM) is a special way of promoting a particular product with the help of a whole network of people who receive a certain percentage of sales or a reward for attracting newcomers to the company. A person simply tells about the product to his acquaintances and friends, and they, in turn, distribute such information further. As a result, a kind of network is formed that contributes to the rapid sale of goods. This is the essence of network marketing.
Inviting people to the company is very profitable. After all, for each new buyer, a person has a certain percentage of the profits received. However, expanding the network of buyers is far from simple. Quite often for this purpose in network marketing the most various psychological receptions are used. Not everyone likes it. That is why, before inviting a new person to the company, network marketing professionals should explain to him the essence of such a product distribution technology and explain the advantages thatthis work.
A bit of history
The first MLM company appeared back in 1927. It was then that the creator of nutritional supplements K. Rehnborg laid the foundation for multi-level sales, in which he achieved good success.
Initially, K. Rehnborg was engaged in ordinary trading. However, a moment soon came when the demand for products became much higher than its capabilities. And then K. Rehnborg came up with a great idea. To distribute the goods he created, he began to attract acquaintances and friends, offering them an appropriate reward.
Somewhat later, Lee S. Mitenger and William S. Casselbury, who came from this company, which was called Nutrilite Products, developed the basic principles of such sales. Soon MLM gained popularity all over the world. By the end of the 1950s, on the basis of the company that initiated a new type of product distribution, the now widely known Amway distribution network was founded.
But the MLM scheme and companies working in this area gained particular popularity in the 80-90s of the 20th century. And today they offer a very extensive range of products, which contains almost everything from vitamin supplements to dishes, cosmetics and household appliances. Which companies have chosen network marketing for themselves? Oriflame and Avon, Faberlik and Zepter, as well as many others. According to experts, in some of these companies, the annual turnover of products offered on the market reaches about 200US$ billion.
Learn to differentiate
Sometimes a network company is compared by those who first encountered MLM with a financial pyramid. Of course, at first glance, the scheme by which sales are carried out is not very simple. However, with regard to network marketing, here a person does not need to invest a lot of money, then just sit in anticipation of a miracle.
If this is real network marketing, how to make money in this area? It will take a lot of effort to grow your customer base. At first, there may not be any profit. However, if you make some efforts, then soon you can start receiving a certain income from sales. If the network is too large, then the newcomer will be far from its top. In such cases, he should not wait for a move to the Maldives or sky-high fees. But here's a couple of tens of thousands as an increase in salary is quite real.
However, before you become an agent and begin to interest clients, you need to pay attention to certain points. They will avoid the financial pyramid. So:
- True network marketing offers to sell a specific product or service that is contained in the manufacturer's catalog. For the future, products are never purchased. Only those products that have been ordered by customers are subject to sale. Payment for the goods is made on the day when it is received from the warehouse.
- Ponzi scheme company will require payment of membership feesor the purchase of "securities" which, outside of that organization, are nothing more than ordinary candy wrappers. In addition, with a financial pyramid, each person receives a profit not at all from the volume of products sold by him and his network, but from the number of those people whom he brought to the company and who paid her membership dues.
- Another type of online earnings that is questionable is the implementation of various equipment or software. Before starting work in such a company, you will need to pay for a certain package of services that allows a person to take one place or another in the trade chain. These can be various tools for working in the form of a plastic card or a personal account, the use of which is impossible without paying a subscription fee. Where can you find such network marketing? Examples of such a business are far from isolated. For example, Talk Fusion attracts potential clients and agents with offers of income that can only be generated after paying a certain amount in advance and attracting two or more newcomers. The chain created in this way will be profitable. Such a scheme is more similar to a financial pyramid, although the company still has a product that needs to be sold. But, in order to succeed in this firm, a person must have the qualities of a psychologist, speaker and leader. And in this case, he is unlikely to be able to rise from the entry level to the very last step.
From the above, we can conclude that successful earnings in an MLM companyis possible only after a preliminary study of all the conditions of cooperation. Only by making the right choice, you can achieve successful promotion.
Assessing prospects
How to start making money in direct selling? To conduct such a business, a reliable and promising network company should be chosen, which will achieve the desired result. The best start option is a well-known brand. When choosing it, you will not need to make great efforts in order to convince customers of the need to purchase. Cosmetics manufacturers such as Faberlik or Oriflame, as well as companies offering household goods (for example, Amway) are popular. Consumers have already appreciated these products, and they will buy them without any fear.
However, it should be borne in mind that other distributors have already managed to occupy the niche of well-known brands. And for those who have chosen network marketing for themselves, how to make money in this case? A high level of competition will require the use of a special strategy, without which it will be impossible to create a customer base and start earning your own passive income. Of course, in this regard, it is easier to make money in a newly created network company that offers a product that inspires consumer confidence, but at the same time is in short supply on the market. These are new dietary supplements, training courses, devices for he alth and home, etc. The choice of one direction or another will largely depend on the personal interest of the person, as well as on his desire to make money from it.
Ranking of MLM companies
OnIn the Russian market there are a large number of manufacturers who sell their goods by direct sales. What are network marketing companies? Their rating contains those brands that occupy almost 70 percent of the MLM market. Avon is number one on this list. Followed by Oriflame. Third place belongs to Amway. On the fourth is the company "Mary Kay", offering cosmetics. The fifth place in the rating is occupied by Faberlik.
The rest of the companies are considered smaller and cover the remaining 30 percent of the market.
Training
If network marketing is chosen as the direction of business, how to make money on it? Attention should be paid to the assistance provided by the representatives of the company to newcomers. It may include various manuals and video tutorials, trainings and meetings. All of this is usually provided free of charge. Sometimes curators help in attracting the first customers. Without training, it is impossible to work in MLM at any stage. The more detailed information a person has about the product and its benefits, the easier it will be for him to convince other people that they need it. That is, persuasiveness directly depends on the existing knowledge base. The experience of MLM professionals also helps, who will definitely tell you how to make a profit faster, as well as attract new people to create passive income.
Making a profit
An important point when choosing a network company is to study the scheme of accrual of funds and bonuses. After all, earningsis the main motivation for any person.
With a fairly transparent scheme for generating income, the absence of pen alties, as well as unrealistic settings for the sales volume offered by the company, work in the selected network company is quite capable of bringing good results.
Action plan
After choosing a specific network company that provides an excellent opportunity to earn money, it is recommended that you draw up a business plan for yourself that will allow you to understand what should be paid attention to.
So, it is worth choosing the way to receive money. It can be a direct sales method or use a passive option. Which one is more promising? Often product distributors tend to start with personal selling. In doing so, they get the opportunity to explore demand and build a customer base.
Professionals who have excellently studied network marketing look at this question somewhat differently. How to make money, according to their advice? MLM gurus recommend that beginners start from two positions at the same time. Indeed, among potential customers there will always be people who want to receive additional income, as well as those who wish to purchase products at the purchase price.
Networkers, who are at the highest or middle rung in the hierarchy of the distribution scheme, note that they owe most of their earnings to the work of subordinates, and not at all to direct sales. Thus, after some time, having built up a client base, you can completely abandon direct sales.products, producing the right motivation for the entire multi-level structure of agents.
Sales Methods
How to get a good income in a network company? To do this, you need to find the most effective methods to attract customers. There are several of them:
- Direct contacts with people. This method is used if a person working in a network company has free time to visit public places or has a very large circle of relatives and friends who are not yet involved in the MLM business. However, judging by the reviews of professionals, this method takes a lot of time and is often ineffective. This option is relevant with an already existing list of customers who only need the delivery of catalogs and products.
- Creating a consumer base using social networks, your own website or online store. In this case, less time will need to be devoted to work, and the coverage of the audience of potential customers will be much wider. In this case, only those users who are interested in the company's products or wish to receive additional income will respond to the offer.
- Creating contextual advertising and landing pages, sending offers to ad sites and email.
Everyone who wants to make money in network marketing can increase their profits several times if 2-3 MLM companies are selected at the initial stage. So, customers can be offered several brands of cosmetics at the same time, andas well as products intended for face and body care. This option is also beneficial in that the cost of the product from competing companies has differences. This allows people of different incomes to choose goods from the desired segment.
Knowing one's own character
Not everyone can succeed in network marketing. In order to receive a high income, you must have the following qualities:
- patience and resistance to stress;
- sociability, which implies the ability to speak, and then keep up a conversation with any person;
- perseverance, which will allow you to achieve your goal, sometimes even returning to where you have already been refused;
- psychological skills that allow you to convince a person of the need to purchase a product;
- leadership that will enable the development of a passive income chain;
- oratory to speak confidently, correctly and beautifully;
- the ability to plan your own time, which will prevent fuss, eliminate inconsistencies in scheduled meetings and leave yourself time for relaxation and self-education;
- trading skills.
A person with the qualities listed above, applying all the rules recommended by professionals in this field, will definitely succeed in network marketing.
