Is Network Marketing, Direct Sales, MLM Meant For Me?
Is Network Marketing, Direct Sales, MLM Meant For Me
?
I have found that some people join a network marketing company and then find out that this is not what they thought it was. Network marketing has several different names or terms they go by but they all mean the same. Some of the other terms that are used are direct sales and MLM short for multi level marketing. There are those people that will say that all the terms I used above are just Pyramids. Pyramids are illegal and the FTC does a great job shutting down these companies. A Pyramid is basically this: The guy at the top that started it makes all the money and the people below him got nothing or almost nothing in return. To be legal you have to offer something in return for your money. Everyone has an opportunity to make money selling their products to customers plus make money on the people they got into the business. If no product or service is offered the FTC has probably got their eye on the company or person. A good strong network marketing company has customers buying and using their products. There are people in some network marketing companies that just sell products and never even get or recruit a person into their down line.
Most people do not understand the concept of network marketing. Here is what I find happens.
They are usually looking for a home business or some way to make some extra money from home. They are just surfing the internet looking and they come across a web site that almost blows them away. It's like this is what I have been looking for and this company supplies me with everything I need to go into business in this kit. There are usually several different price plans they can come in at, with some starting as low as $30 and going up into the thousands of dollars. I find that most companies have a fairly good starter kit for around $150. I want to warn you that some companies starter kits sell for $500 and when you get it and open it up you say "Where are the products?" "Is this all I get for the $500 I just spent?" If you feel that way when you get a starter kit from a company may I make a suggestion? Send it back to the company and ask for a refund. Do you think you will ever be able to market their products with passion? No you won't, so why go any farther then that. I am one of those people that has gotten a $500 starter kit and said the same thing "Where's the beef?" I got a starter kit with a Fast Start Guide and a couple boxes of product. My problem was I read the persons books, listened to their CD,s and really liked the person so I stuck it out. After signing up my 6th person into the business I just could not go on. I felt so bad about offering someone so little product for their money I could not go on. I threw in the towel the week I sold two $500 starter kits and felt lousy for doing it. People I telling you this up front. If you don't believe in the company or something smells fishy stay away from that company, there is always another to join. If you are truly passionate about a company and its products then this may be the one for you. Check out the company before you join. Take your time. You want a business you can have fun in not one that makes you feel like a con artist.
OK let me get back on the subject I've ranted and raved enough.
By this time you have probably filled out a form with your name, email address and phone number. You first fill out the form and hit enter so that you can see more about this get business opportunity.You are transported to a page that goes on and explains the business and how great the opportunity is. Most of these videos are professionally done and do a great sell on people. OK, now they have your attention and you feel like man," I need to join this company and get started selling these products." At this point what happens is you get a phone call from the network marketer from the form you filled out. Different companies and people will be explaining the opportunity to you in different ways. Some network marketers will tell you how great their company and all the money they are making and you can do the same. I have personally heard a network marketer tell a person they need to join his company because they have an opportunity to win a sports car. Hype, hype, hype, is all you are getting on this phone call.
Here is my advise. If you get a call and it is a lot of hype you had better be Leary about this person. Too many people have joined a company because of all the hype and then find out they have $3,000 to $4,000 invested in a company that now they are wondering why they joined that company. I do want to say this and please don't take it the wrong way. You can have a network marketing company that is truly a wonderful company but the representative that represents that company to you could be a real jerk. I'm telling you like I see it and how it is in a lot of cases. If you don't care for how this person is coming across to you then dump him or her and find another person that is in the company. Try to find yourself a leader on someone that is supported by a leader or several leaders. When you get into a network marketing company it can make all the difference in the world who your up line sponsor is.
Let me give you the definition of just what sponsor means.
A sponsor is usually the person that brought you into the business. The sponsor will often get commissions, bonus money and overrides from you coming into the business. Most of the time your sponsor will be available to help and assist you in getting your business up and running. Listen to your sponsor or in some cases listen to you sponsors sponsor. Your sponsor may be almost as new as you are in the business. Remember this business is all about getting other people into the business with you. You can sorta look at it like a new car dealership. You have your car salesman on the showroom floor. This will represent your sponsor. Then you have a manager that is over several salesman on the floor. Go a step higher and you have the Showroom manager that usually sits at the big desk in an elevated part of the showroom floor. I sure you have been thru the chain of command at a new car dealership at some time in your life. Each one of these people get a cut of the sale when it is made. They all have an interest in making that sale because they will benefit in some way when a car is sold.
In network marketing things work sort of like a new car dealership. When your sponsor signs you into the business he makes money, his sponsor makes money and his sponsors sponsor makes money. In some companies it stops at that level but in others it can be infinite. We are talking about money here, so let me inject this in right now. Money is made in several ways in network marketing.The money I am talking about here is in the form of volume. You may be the 100th person in someones down line but everyone above benefits when you purchase product and sell products. Money is made in the from of volume. That volume runs right up thru all the people above you. Some companies that are set up like this and others are not. You will find this information in the companies compensation plan. This is important. The compensation plan is how you are going to get paid!
I've seen companies with a compensation plan that only pays out a 5% commission and others set up in the same way pay out 20% in compensation. Which one is more appealing to you? That's easy to answer, the one that pays out 20%. There is one company I am familiar with that pays you $60 every time you get $600 in volume from your sponsors leg or group of people he is building and $300 from the people that you sponsor and the people they sponsor.
The system I described above is called a binary system. Basically you have two legs, a left leg and a right leg. You will be in one of those depending on how your sponsor is building their business and which leg you are in. Either way it usually does not make a difference.
It is sometimes referred to as a Fast Start Bonus. If you get a hard sell from this person and they tell you that you need to get the most expensive package to start out with I'd truly think on that one. First of all most companies will let you upgrade to the higher plan. Second, what happens if after a month in this company you feel it is just not going to work out. What you expected of this company, the products and your sponsor are just not what you thought it would be.This does happen from time to time. I find it happens more often to the new person because they want to re-invent the business. Hey!! The business plan works. Follow it, listen to your up-line sponsor and try to be on every conference call you can be on. It is your own fault if you fail in this business. If you picked a good company and you are not follow their marketing plan then your to blame.
I hope this helps some of you people out there. This information has come from my own experience in Network Marketing over the past year as I have been in four different ones. I have found my home at JavaFit Coffee .
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