How Beginners Can Make Money Online
Network Marketing
Network marketing is a very popular way
of making money online, and there are many MLM opportunities
available. Before we launch into a brief discussion about network
marketing, let me first make one thing perfectly clear. There is
money to be made in network marketing programs.
What most people know, have heard or have
experienced in regards to network
marketing
has often left them with negative impressions.
I don't know, but you may be one of those people. Many
people relate network marketing or multi-level marketing (mlm)
with overzealous sales people, continually torturing friends and
family to "join" their program or opportunity. Many equate network
marketing with scams or "pyramid schemes" and as a result,
network marketing is often immediately dismissed as a legitimate
strategy for making money and building wealth. That can be a huge
mistake.
You have basically two ways of making
money with MLM: by selling the company’s products and by
introducing others to the program. The program is referred to as
‘network’ or ‘multi-level’, marketing because it involves members
that form a network within the program, with each at a different
level relative to your position.
When you join a network
marketing program
, it will generally be by accepting an offer or answering an
advertisement placed by another member. You join what is known
as his or her ‘downline’ (let’s call it ‘his’ for this purpose). You
then introduce others to the program, and they form your downline.
The person who referred you to the program is your upline. You make
money for yourself and for your upline, and make money from your own
sales and from those of your downline, hence the term
’multi-level’.
Some programs have a limit to the number
of levels from which you can make money, while others have no
limit. Thus, if members of your downline recruit further
members both they and you make money from the new members. In
a good program that money is made by them selling the
products. For example, you could earn 20% of the sales of your
first level, and 10% of the second, 5% of the third and so on. It is
therefore in your interest to look after and properly train those
that you have recruited.
Most network marketing programs offer a genuine MLM
opportunity
that is fair to every member, and allows
everybody to make money from the sales of the products.
However, there are others that charge members to join the program,
and also charge for promotional and advertising material. If the
majority of the income comes from the payments of the members
themselves, and not from product sales, it is difficult to see how
the program can remain viable.
However, a good solid program will by and
large work for you if you are prepared to work for it. Most
people fail because they expect to go to bed at night and wake up
rich. That just does not happen – not in MLM marketing and not
in any other kind of marketing. It happens in the lottery, but
that’s about all.
If the company has a good product, and there
are many network marketing companies that have excellent products,
then you can make a good living using MLM. There is nothing wrong
with a multi-level compensation plan, since many affiliate
marketing programs
operate the same way with payments
being made up to three tiers in some cases.
While there
are network marketing opportunities that are less-than-perfect, and
others that are downright scams, there are also an overwhelming
number of mlms that are quite legitimate. But even in the legitimate
multi-level marketing programs, people fail. A lot of people
fail.
One of the reasons that network marketing
has acquired such a bad reputation is unscrupulous companies
charging individuals to join, with no product and no other means of
income into the program. Another is the failure rate. And, people
tend to point out the number of failures as an example that the
network marketing system itself is somehow crooked and
dishonest.
I think there may be another explanation which
is that all too often, network marketing opportunities are presented
to "average Joes" with a blueprint or formula to follow. Members of
the network marketing organization are told to simply follow the
blueprint and they will succeed. Well, that doesn't usually work.
Why? Because network marketing is a form of marketing and sales. To
succeed in
network marketing
, an individual has to
have sales and marketing skills or be taught effective sales and
marketing skills. If you place a person in a position to market a
service or product who has no skills to do so and who has not been
properly trained to understand sales and marketing concepts, they
will fail. No secret, no cryptic formula needed.
Furthermore, if those individuals are being
placed in a position of developing a home-based
business
, but
they've never been in business for themselves or don't know how to
develop a business, same results. A great deal of the success or
failure of an individual in network marketing is directly related to
the type and quality of the training he or she receives.
Most failures in network marketing are
the result of people not being properly trained to succeed, and when
they fail often continually, they simply and finally call it quits.
But, network marketing can be a very successful and profitable
income strategy.
Sprint started as an mlm business, as did
MCI. Those were obviously not failures and certainly not scams, and
the companies went on to enjoy at least a small margin of success,
am I right?
There is a great book out entitled The
Seven Great Lies of Network Marketing. In it, the author Ann Sieg
details seven lies related to network marketing, the things that
keep people like us from succeeding in the network marketing world.
Click here for your free copy of the book, and find out how you can
be successful and have a profitable business in network
marketing.
Get your
copy of The Seven Great Lies of Network Marketing
here.
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