A New Outlook on Network Marketing

People who are outspoken about the negatives of the network marketing industry are here to stay.

I will be the first to admit that there have been irresponsible uplines, who have made promises they couldn’t keep and manipulated people into spending their hard earned money.

At the same time, if you are going to join a network marketing business to build it and make it a long term venture, you have to take responsibility for what owning a business entails.

Today I want to first talk a little bit about the disconnect that exists in the network marketing industry between the successful distributors and the majority of their organization that isn’t making and won’t end up making any money.

The Responsibility of the Upline

It is important when you are building a team of people who are going to work with you, not to misrepresent the facts. One reason, the most obvious, is it creates a lot of unnecessary drama. If you are being less than genuine, or don’t really have a process, or aren’t training people properly, maybe because you don’t know how to, or for whatever reason, you are doing your team a disservice from the start. You are wasting your time dealing with unmotivated people instead of qualifying the right kind of prospects.

Segment your business

The entire network marketing industry is built on the promotion of products and services people need and use often or every day. This means, the front end of your process must be centered around the product. I am not saying that you can’t have a process that is geared towards other network marketing professionals. You definitely should. I am saying the entirety of the process on the front end for every category of person, needs to be focused on the advantages of the product.

Notice that I don’t say features and benefits. I use the word advantage because it is all inclusive and it stimulates more creativity when it comes to laying out the process.

Money is never enough of a driving force.

Money is a tool. It is not the outcome anyone is really looking for. I don’t think being money motivated is good for the network marketing professional, although a lot of really creative and amazing people in this industry seem to be that way.

If money is the primary motivation, you are leaving people in the dust. You are more often than not going to be more motivated than other people if you have a deep money motivation. It is also easy to get sidetracked into other things. There are a lot of talented people out there that are not successful because their primary motivation is the money.

In network marketing, you have to have ethics.

You have to have a moral compass if you want to duplicate your success.

And most importantly, you have to be motivated by helping other people.

This is why it is so important to build a firm foundation around the advantages of the product. If the company you are with has a good product with a lot of advantages, you will build a real passion inside of your organization.

We live in a fast paced society.

Everyone is always in a hurry.

People are ready to move on to the next level as quickly as possible, and this is good for some people, but it doesn’t work for most.

That is why, as a Leader in the Network Marketing Industry, you have to have integrity and patience. You MUST think about the process that is going to be easy to follow throughout all levels of your organization.

Educate your Downline – (And Train them in the Process – to be covered in later post. )

At the front end of the process, it is important to let people know, that if they are going to get in the business, it is a real business and owning a real business requires work and responsibility. It also requires accountability and investment.

It is important to let every member of your organization know that they are being handed something that does have the potential to be life changing, but as with a conventional brick and mortar business, there are some things that they are going to have to do to be successful. Just as with a brick and mortar business, you are going to have to have a strategy and a plan in place. How are you going to generate customers? How are you going to encourage your customers to get the word out about your establishment? How long is it going to take to actually make money after recouping your original investment?

And this right here is where the disconnect seems to happen.

Because people see the leaders of BIG organizations making BIG bucks, they assume that kind of money is attainable by anyone. After all, the story they heard about the person was that they were just a regular person who hit it big.

IT is true that anyone can be successful in this industry.

That is one of the great things about it.

But what is often not told is the work that the average Joe had to put in to building such an organization. I am sure they didn’t just call a couple of people in the beginning and then sit on the couch because the results were not what they expected.

They worked to become successful.

That is why it is important to let your organization know what they have their hands on when they start a network marketing business.

A network marketing business might cost you $500 on the front end. Then you might spend $100 a month on the product that you could probably get for a little cheaper somewhere else.

Compare this to a conventional business.

You spend hundreds of thousands of dollars on the building, or you lease it for thousands of dollar a month. You have to purchase all of the interior items, like kitchen equipment if you have a restaurant. You have to find the employees and even if you are leasing everything, you will never start a conventional business for less than $10,000 no matter what you are doing. If you are leasing a store front for instance, you might get away with that for the first month, but that is a continual expense, each and every month.

So at best, you are spending $10,000 a month to start the business and several thousand dollars a month to keep it going.

On the first day of business in a conventional business, you have made no money, and it is going to take some time to recoup that investment. That is how business works.

Let’s say that you own a restaurant. Your average profit per transaction is $25. Every time someone comes in your establishment and buys, you make $25. Now the in the case of a restaurant, the people who come in the door and sit down are usually going to buy something. But, you have to get them to come in and sit down, and if you don’t provide a good experience, they will not be back.

So you have made $25 off of one individual who visited your establishment, but who is to say they will ever come back. Will they tell their friends?

If you own a restaurant, you have to generate repeat business, and word of mouth business. This means you need to invest some money into the business. That is a part of what you are spending each month.

On the first day in your new network marketing business, you have made zero money. You have paid money on the front end, but let’s think about what you actually get for that original start up money.

You have a product. You don’t have to find a supplier for that product or develop it. The branding is done. The packaging is done. All you have to do is tell people about it.

You have a website and marketing funnel. We live in the information age, and when you become an MLM distributor, you almost always get a website. The website is usually a high converting site with sales copy, videos and all of the tools you need to educate people about your products and then the opportunity.

You have a warehouse if you have a physical product, or if you have a service, you have a team of professionals working for you, but you aren’t having to worry about those people getting paid if you don’t make sales.

When it comes to the income that can be generated by a network marketing organization it is WAY MORE than what you could make owning one restaurant. Now, that isn’t true if you make a restaurant franchise, but with each distributor you sign up, you are in principle opening up a new location.

Network marketing makes a lot more sense than investing tens or hundreds of thousands of dollars in a business that has a 1 in 2 chance of even being around 3 years from now. If you draw that out 10 years, more than 70% fail.

The only reason you would fail to recoup your money in a network marketing business is if you don’t do what it takes to learn the process and make the business work.

If you let people in your organization know the truth and really think about the numbers you are going to save a lot of heart ache. Remember duplicating real success is about duplicating your own success.

The Responsibility of the Downline

If you are a new distributor in a network marketing company, you have to realize that you have a business.

The business has a process that it is your responsibility to learn and implement.

You have to be patient. Big money is not going to come overnight.

You have to build your organization one person at a time, and the more you focus on the individual people you are bringing into the organization, the more successful you will be over time.

I am going to be continuing with this in a future post, but because it is a little long, I am going to cut it off today.