I see the following situation so many times with people in
their online Network Marketing or MLM Business.
They are looking for a way to get some extra cash and come
across an MLM opportunity see the Compensation Plan,
totally see the leverage that is possible and fall in love
with the dream of working less, choosing their own hours
and earning a lot of money in the process.
Do not misunderstand me all of this is possible once you
know how to do it. But for the beginner in Network
Marketing it is a steep learning curve and will take either
a lot of time and effort or a lot of money for them to
start earning.
Most people seem to get involved with a high end
opportunity to start with that pays out big commissions
usually $1,000 per sale and think that if they can just get
a few sales they will leverage of their downline and earn a
lot of cash virtually on autopilot.
The problem is that the people who purchase a product from
them (Their Downline) also think the same think that they
will too leverage from their downline.
Again this can happen if you are lucky enough to sell a
product to someone who has a huge list of prospects and
knows how to Network Market then they may go out and make
50 sales in a month and you therefore earn $50,000.
Unfortunately the chances of signing somebody like that
from just a few sales are not good. In fact 97% of people
fail in their MLM Business.
Most people start out by buying leads from a company and
this has several inherent problems.
1.They are usually expensive
2.They are usually sold several times over so that the lead
generation company can make a profit.
3.They are quite often offered an incentive to fill in an
online survey. Which means that they have not been the one
to initiate the interest. (It is usually just another
question on a survey)
4.They are not targeted enough.
A lot of the time people end up in the situation that they
have spent more than they would earn in commission from a
sale and they have not even made a sale yet.
Let me ask you a question '
Would you really spend $2,000 in marketing to earn a
commission of $1,000?
It does not make any sense to do this anyone can see that
you have just lost $1,000.
But what about the leverage is what most of you are
thinking. If that one sale sells one product a month for
the next six months I would be in a profit situation of
$5,000.
And of course you would be correct if that did happen.
Remember the statistic from above - 97% of people fail in
their MLM Business. Of course this does not mean that they
do not make any sales but I'm sure that you get the point.
If you want to be successful in Network Marketing and have
any kind of longevity then you need to:-
1.Create your own sales (Do not rely on your downline to
sell)
2.Improve the odd's for your downline - Teach them how to
be successful in their business - You will have some time
wasters to filter - So concentrate your time on those who
are taking action.
3.Create your own leads ( you can do this at far less cost
and they will be far more targeted)
I would also recommend starting with a lower value product
whilst you are building up your knowledge. It is far easier
to sell something that is $30 than $3,000. Think about the
products that you have purchased - I bet you have purchased
several in the $20 to $80 category and very few over
$2,000. The risk at this level is not as big also.
That way as you learn and add value to yourself in terms of
knowledge you will also be building your list so that at a
later time you can move up to the higher end product and
you will have a list that you can sell to.
Remember the title to this article - Turnover is Vanity,
Profit is Sanity.
----------------------------------------------------
Mike Goodchild is a qualified accountant and has been
making money online for over 7 Years. He is the author of a
Free 10 Day Email course on how to get free traffic -
http://www.mycashmachine.co.uk/free_traffic_tips.htm
If you would like to look at the ideal MLM opportunity if
you are a begginer or expert see
http://www.endless-mlm-leads.com and learn how to generate
leads for free and build your list and earn a residual
income at the same time
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