Many things have been said about multi-level marketing. One of the things that stand out is how people are recruited into believing that there is a great income opportunity. In a normal business circumstance, it makes sense to sign customers up first before recruiting them to be representatives. In a multi-level marketing plan, however, things happen vice versa. This is one of the things that make people very suspicious about the selling plan.
Why do people enter multi-level marketing?
This is one of the most important things a person should ask himself or herself if they are already doing it or are considering doing it. In most cases, people enter MLMs because they believe that they will get considerable amounts of money. There are also those who figure that they could become rich within a short period. Even though we say dreams are valid and one needs to have a vision, you should not bank on this one. The only way you could get some level of success is if you actually believe in a particular product, not selling it for the financial benefits that are connected to it.
While it is important to appreciate the fact that many people have made lots of money in MLMs, it is equally as important to appreciate the fact that there are still those who have wasted lots of money and time trying to chase that pipe dream. It is important to do adequate research regarding the opportunity that you are trying to seize. It is always wise to go at it with the most reasonable expectations to start with.
Lessons you should learn
Multilevel marketing is also referred to as network marketing and it is one of the business models that grow very fast. It has been around for a couple of decades now. The selling revenues grow annually and dramatically and usually is more than the economic growth.
The success of MLMs is something that we can learn from. This kind of model is whereby one is required to recruit people who in turn generate sales. It is for this that one is paid. Many people have been involved in MLMs at one point in their life with some going as far as 14 percent as selling representatives. A lot of people have also purchased goods from the direct sales representatives.
There is however one very important thing that should be noted. A great number of the marketers involved in MLMs have a very negative experience. About 70% of marketers leave the industry. There are many problems and challenges with this kind of marketing model.
Everyone works for themselves and the career you are in becomes your business. This is something that makes MLMs so attractive and explicit. The other thing is that there is a low entry barrier. However, it should also be viewed as a great danger. So many people enter MLMs, but lack the proper skills to run any kind of business successfully.
Things you should think about critically
Everyone is interested in learning more about how to practice multi-level marketing. There are some lessons that all marketing and sales professionals should embrace to be effective despite where they operate. They are:
Treat every business as a business that is relationship-based
There is no way you can sell a product that is inferior using a superior relationship. However, you will need some relationship to sell any product. This is something that is very clear in this marketing model.
Try to be analytical about the network
People who have made it successfully as salespeople are able to penetrate markets that have been untouched. They then work hard to gain a higher share of that market. This can be done easily if the market happens to be highly dense and when everyone is aware of the players in the industry.
In this network, you notice that the word of mouth is able to spread faster, especially when it is about the value of your service or product. The principle is evident in this business model, but can be applied in almost all businesses.
You need to build the product you are selling around a community. There are many companies that come up with a user forum where their customers are allowed to give their views and reviews about their product. This is a great way in which they can support their services or products. Multilevel marketing companies also work in a similar way. This is because they rely on communities for support, sales, recruiting, and follow-up.
Leveraging those who aren’t leveraged
Most of the direct representative happens to be female and over 50% of them have been to trade school, technical school, partial college education, and others have only gone up to high school. The sales force is not like the traditional sales force, as we know it. We are used to more males with higher levels of education. For the MLMs, the sales force is very similar to those who buy from them. Salespeople are very effective when they get to sell to their communities because they share the same interests and common culture, which allows them to build very strong relationships.
In order to be a good representative, you need to build relationships first. This is a very delicate part of network marketing. People try to leverage personal relationships to make sales. This leverage can make people queasy, but it is clear that people have been able to build some multiplex relationships. This means that their friends are their customers and they are also customers to their friends.
Do not treat everyone as a prospect
One of the greatest mistakes that marketers and salespeople make is to consider everyone a prospect. In network marketing, they call it the three-foot rule. This means that everyone who is within 3 feet is a prospect. If you were a top marketer, you would not do this. It is all about knowing if and when to make that sales pitch.
There are many lessons that multi-level marketing can teach us and there is a lot that can be applied even in other networking models. You should consider all aspects and make use of online networks to get ahead. Having reasonable expectations can keep you from frustrations.
Category: Multi-level marketing
Keywords: networking, network marketing, sales representatives
Tags: online marketing, multi-level marketing, network marketing