Can I really tell you all I have learned about MLM in one single post?
Highly doubtful! But I can certainly hit upon some of the highlights and can tell you about some pitfalls to avoid.
I have been working a home based Internet business since late 2000 ~ and for about the first 3 years it wasn’t a huge success. I worked with less than fantastic companies, with less than fantastic training and support and made some money because of my *lucky* nature… and skills that I developed along the way.
Because I needed to stay home with my small children, I learned how to build a business using just the Internet and the phone. I learned how to generate my own leads online, and also honed my prospecting and closing skills. Once I aligned myself with a decent company with a good payplan, I worked my way to a very sweet income.
Of course, Network Marketing, or MLM, is traditionally offline direct sales. Often called ‘relationship marketing’ or ‘word of mouth’ marketing, it is the movement of product through the distributors to their sphere of influence. With most companies you can get started for under $1000, and you have a truly unlimited income potential.
Sounds fantastic, right? Well, it should be. But there are some pitfalls to avoid, and some advice I can give you to keep in mind as you consider investing in a MLM company.
Quality Products in Demand:
First and foremost, since money is made from the sale of ‘product’, you must ask yourself if the products would be bought and sold if there was no money making opportunity available? In other words, do you feel you would be able to acquire CUSTOMERS for the products?
Are they of a superior quality, and priced at least somewhat competitively?
If you think for a minute that you are only buying them to make money, and will sell only to people that want to make money and so on… walk away.
There absolutely should be product focus, and customer acquisition should be taught and promoted within the company.
If you choose a company with excellent products, you’ll be able to make money all day long with customers. Solid, residual income from happy customers who will give you referrals all day long!
Compensation Plan:
Payplan is also incredibly important. Unless you have been around the block a few times you won’t know what makes a good payplan. The best you can do is take a look at a few similar companies and compare their compensation plan. Which is going to pay you the most money for your work?
Marketing system:
If your Network Marketing company knows something about MARKETING, you will make a whole lot more money with less work!
Do they have an online system that you can direct your prospects to? It makes no difference if your prospect came from a Chamber meeting business card exchange, an ad in the paper, or a pay per click ad on Google. They must enter their name, email and phone on a capture page and be taken to a presentation. An email series should them followup with them automatically on your behalf. Of course you will call them ASAP too-
Does the company provide the marketing system for you, or will that be an additional expense?
Professionalism:
What is the corporate culture like? Attend conference calls, local meetings, webinars, etc. Are the founders, the CEO and their top representatives on the calls behaving with professionalism? You might be surprised at how many do not. I have been on some horrible calls, and even worse meetings. Be very careful who you align yourself with!
Training:
Your sponsor will tell you ‘full training and support is provided’. Thats the nature of MLM. The sponsors do the training of those they enroll. But how is this done? Is there a systematic method to training you so that you will know exactly what you need to do to put cash in your hand that week? Or is it just ‘get some customers or enroll somebody and you’ll get paid’. Is your sponsor qualified to train you? If not, who do you have access to that IS?
The best case scenario is that corporate has a training program in place and you can plug your new people into it immediately. Thats how you can truly leverage your time. Your job then isn’t so much to train, but to develop leadership in yourself and others.
Finally… we werent born Network Marketers, but thankfully this profession has come into its own and there are many excellent, professional trainers we can and should ‘plug into’.
Always be a student, and know that each experience, whether its a win or a ‘failure’ is part of your marketers education.
Stay consistent, be persistent, and make your fortune in MLM.
Wishing you life’s best,
Melanie Milletics
Twitter Updates
Great information, I definitely listen when you talk about growing an MLM business. Having stayed away from the MLM arena for the last 10 years, I was hesitant about the latest one, until I started to use the criteria you mention here… and it all fits.
Thanks for being the “go to” person for all things MLM!
Micheal
Greetings Melanie,
Nice post, and I am certain it will hit home with hundreds of thousands, and for good reason, success is never immediate, it takes time, and your key points are valid, especially when it comes to choosing a product or service of value.
In a recession as severe and long term as this one, if you cannot offer true value and savings whereby prospects will purchase even without any income opporunity, then you know you hit the Motherlode of opportunities. I specialize in recession proof businesses, so I will check yours out, thanks again, very nice post and I wish you continued success.
Success to all, Mike
Great post Melanie, you hit the nail on the head of what MLM is not what it should be.
Having been involved with Amway in the early ’90′s (but no longer) I know the value of training, or lack thereof. Sure they have great products, and a good comp plan but the only training I got was hit on everyone in arms reach, no means yes and go go go,rah rah.
Your approach is much better, do-able and even better teachable.
Michael
P.S.You’re doing great on the Body by Vi challenge
Great article Melanie! I am now re-entering the MLM industry and feel that I am positioned perfectly in key areas that is more relevant now than ever before. Products are the best, but the payplan is even better. And let’s be honest. With a good customer group you can make a sweet income, but with a team of people with a good customer group, you can make a juicy income. It is during this time that people are looking for the income.
Blessings,
Marjorie
The Right Mentor
Nice post here Melanie! What you say about the training is so true. Any new recruit has to evaluate the level of marketing training from their upline before that of the company. Relying on cookie-cutter corporate training is often futile since internet-based exposure is seldom taught. Fortunately there are internet pioneers like you willing to give back to the profession’s newest marketers. Keep it up!
Melanie!
Amazing video and everything you said is so true! So excited to be on your team with such an amazing company! Thank you for the opportunity to work with you and to learn so much from you!
“Having then gifts differing according to the grace that is given to us, let us use them:” “he who teaches, in teaching;” Romans 12:6-7
That is your amazing gift!
Agnes
P.S. You look amazing and I bet you feel even better!
I have been following Melanie’s information for some time now and I must say it is always juicy. It’s always something you can use right now. If you haven’t seen her tutorials on the Renegade Professional, you must. She provides easy to understand information that will take your business to new heights. I always pay attention to Melanie. You should too. Thanks..Steve Warren.
Said another way…
What are some criteria for choosing the right MLM?
Professionalism is first- and it encompasses many aspects in itself including having the right people in the right positions in corporate, customer service, web presence etc.
Unique products with real value in the marketplace and a marketing plan that includes a solid CUSTOMER acquisition training.
Training – top level sales training delivered online and off – a systematic approach for creating entrepreneurs. That way I can leverage my marketing – plug people into the company system to train them up right!
Marketing system – built in, not at additional cost. We live in an online economy. Our Network Marketing companies need to have a clue about marketing! That includes giving us conversion forward capture pages and autoresponder followup built into the distributor website.
So capture pages, autoreponders, prospects managers- all as part of the distributor website.
What else…
Of course! A modern comp plan that pays me what I’m worth!
Hi Melanie,
Your post really helps me a lot to learn more about MLM. I guess the concerns and issues that have to be considered when starting an MLM business are still the same though they come in another manner.
And it’s true that there are so many products being sold right now that you would have to think twice before you choose one that has high value for others other than just yourself.
Thanks for enlightening me here.
Elmar