Posts Tagged ‘MLM companies’
MLM Sales Secret Revealed – How MLM Companies Make Money
Monday, January 11th, 2010As part of my new MLM training video course. This video shows you how MLM Companies make money using traditional MLM marketing methods and why if you use these outdated methods your network marketing business will die while their business continues to grow.
Find out exactly what MLM marketing methods you can stop using and what you must know to increase your MLM Sales.
MLM Secret – Limitations of Traditional MLM Marketing Methods
Monday, January 4th, 2010When I first got started in network marketing, I was taught by my MLM Company’s leaders to make a list of my friends and family, get more names from those people, talk to anyone close to me (known as the 3-foot rule), and hand out business cards and flyers. The crazy thing is that I actually did it. Once, I made it to the bottom of my list (that only took about one or two weeks), I asked my sponsor what I should do next and he said to make another list or prospect the list I already had again. Using your warm market is a traditional MLM marketing method but it has it limitations.
The first limitation is that using warm market prospecting is untargeted. It’s untargeted because you are talking to people that didn’t request more information about your network marketing product or service. When it comes to marketing your business that is probably one of the biggest mistakes that you can make. Can you find customers and business builders using this method? Yes, you can and there are some that grow a large organization using just their warm market but that is the exception not the rule.
One fundamental rule of marketing is to target your marketing. The more your message relates to your prospect, the more likely you are to convert that prospect into a customer. The problem with using your warm market as your leads is that you are trying to create interest in your network marketing product (or if you do what your MLM Company preaches, in the business opportunity) instead of them already being interested to begin with. This traditional MLM marketing method requires a lot more time and energy to get sales.
Another problem with using the traditional marketing methods that are taught by MLM companies is the limitation of using your warm market. How many people do you really know? Even if you can write a list of 100 names and you got everyone on that list to give you 20 more names (which isn’t likely to happen) you only have 2000 leads to work with. And remember these are just names and numbers of people, they aren’t people that already have an interest in your network marketing product or service so you are going to have to try to create that interest.
It doesn’t matter what business you are in, leads are the life blood of that business. Without leads, your business is dead. In order to grow your business to where you are making a good living every month, you will have to make a substantial number of MLM sales. I can almost guarantee that you will NEVER close 100% of the time.
Let’s say that you can convert 5% of your list into customers. (I’m assuming that you are very good at sales when I use a number like 5% because the reality is that it would be closer to 1% when you are using untargeted prospects.) At a 5% conversion rate with your 2000 names, you will have 100 MLM sales. Sounds pretty good doesn’t it? But this is assuming that you actually get to talk to all 2000 people on your list, NOT likely to happen. You would actually be lucky to talk to half of those people. (Remember that the majority of those on your list are referrals.) Let’s go with it anyway. 50% of 2000 = 1000 and you can convert 5% of them. That gives you 50 MLM sales. Still sounds good doesn’t it?
It sounds good but the reality is that you will maybe get 3 sales from your warm market. Assuming that you can make a list of at least 100 names. 3 MLM sales does NOT a business make and what do you do when you run out of names on your list? Do you go selling door-to-door? I’ve done door-to-door sales before, I can tell you that you have to have a very thick skin to make sales that way.
Audio: Choosing A Network Marketing Business
Wednesday, June 10th, 2009Press play to begin steaming the audio.
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This is a short podcast, it comes in right around 14 minutes. (It’s my first and I didn’t want to bite off too much) It’s about choosing a network marketing company that is right for YOU. Choosing a home based business isn’t something that you should just jump into without doing your homework. There are a lot of scams out there posing as MLM companies and I want you to be armed with some information before you get started with your own network marketing venture.
In this podcast you will discover:
- What to look for in a network marketing company
- How to recognize if a MLM company is a scam or if it’s legit
- What to look for so you know that you will get paid for your efforts
- Plus a lot more.
I will actually be giving you 11 factors for choosing a network marketing business. If you use these factors when choosing a MLM company, you will increase your potential for making an income from home and decrease your risk of failure.
I hope you enjoy!
8 Days To MLM Sales-Day 1, Identify Your MLM Product
Thursday, June 4th, 2009Because my passion is helping network marketers to grow their business, I talk to many that just aren’t where they would like to be with their home based businesses. A lot of times I hear that MLM’ers just aren’t getting any kind of support from their upline leaders and sometimes I hear just the opposite. The marketer is getting all kinds of support but nothing is working for them. I thought I would give my readers that are struggling in their network marketing business a way to increase the sales of their MLM products or services in just 8 days.
Now I intend to give you enough information so that you can be making sales in as little as 8 days. Of course, you may take longer (I had a learning curve too) but everything I am going to share with you when put together will help you to sell your MLM products or services. If you read this and say to yourself that Amy has lost her mind because she is showing you how to make sales using “old school” techniques, then keep reading because everyone has to start somewhere and I would like to see network marketers make more money than they spend. That’s why I will explain the why and the how of the techniques that I use and teach. So, let’s get started shall we?
Day 1- Identify What MLM Product You Want To Sell
Most of the MLM companies that we get involved with have more than one product or service. For example: Pre-Paid Legal has both an Identity Theft protection service as well as a pre-paid legal service. Now luckily with PPL you really only have to choose between the two MLM services but there are other companies that have dozens to choose from. Let’s take ACN for example (I have a lot of students in this MLM company) ACN has phone services; VOIP, Cell Phone, local and long distance plans, and the much wanted Video Phone. ACN also offers a satilite TV service, a burglar alarm service, and Internet services. Now that’s a lot of services to choose from.
Luckily for me when I first got started in network marketing, my company only had one product. However, instead of being taught to market that product, I was taught to push the opportunity. The thing about trying to sell the opportunity is that there is always a better opportunity. So, even if you do find someone to join your business, they will leave in about 3 months when they aren’t making the 6-figure income your upline leaders and MLM company said they could be making.
So, how about we actually market the product instead of the opportunity. Besides, can you really say that you are an expert at making money from home when you haven’t made a dime? You can, however, be an expert in your product. You have used the product, you know the benefits of using the product, and you know what the product can do for people.
Why Choose Just One MLM Product
The main reason that I want you to choose just ONE product is so that you can focus on just the one thing. Once you have this one thing mastered, you can introduce other products. The best way to sell your MLM product is to be an expert in that product. By focusing on just one of the products that your network marketing company offers, you can know everything there is to know about that one product. You don’t have to be an expert at everything all at once. Don’t worry about the compensation plan, or the business builders that everyone says that you must have. Just worry about being the expert at one thing and that is just ONE MLM product.
The product is what you will be selling and it is selling the product that will make you the money. All the other stuff will come after you master this one. I am a runner and I have ran a half marathon but I can tell you right now that I don’t like to run, I do like to eat though so therefore I run. Do you know how to run a half marathon? I didn’t either at first. I first had to learn how to run one mile before I could run 13. That’s what I want to teach you how to do. Sell just one of your mlm products, become an expert at selling that one product, then you can do another and another.
Once you start making money by selling the product, you will be amazed at how many people will suddenly want to know what you are doing. Think about this. If you got involved with your MLM company because of the money making potential, did you see that potential from an associate that hasn’t made a dime or were you looking at the heavy hitters at the top and saying to yourself that you wanted what they have?
How To Choose Your MLM Product
Hopefully, you see the benefit to marketing just one of the products that your network marketing company offers. Now you may have a really tough decision to make. How do you choose which MLM product to market? They are all good. I’m going to give you a few tips that you can use to narrow down your choices.
Tip #1 – Does your MLM product have exclusivity?
It doesn’t have to be so new that no one has ever heard of such a thing. You don’t have to be first or even one of the first. If you choose a MLM product or service that has never been done before, you actually have a lot more risk than when you have a product that has been proven. If you have an older proven product with a new twist, well then you may have something. What I suggest avoiding is a product that everyone seems to be doing. Of course, if everyone else is pushing the business opportunity, you may be the only one marketing the actual product.
How do you know if you have exclusivity? Do an Internet search. Put in your what your product is (ie, skin care, phone service, greeting cards, etc.) and see what comes up. Count how many ads come up, that is your competition. The more people marketing your product, the less exclusive it is.
Tip #2- Does the MLM product have something to do with health, wealth, or love?
Is it something that a prospect would seek you out for or do you have to do a lot of explaining to get the prospect to understand? There are primarily 3 product categories that you can base your business on; Health, Wealth, and Love. Products that fit into the health or love categories are easier to sell because they are emotionally based. People will buy them because they want better health or more love. The wealth category is going to be your toughest sell.
Tip #3 – Do you have a passion for you MLM product?
Is it a great product? Did you get amazing results from using the product. If your passion is more about the opportunity than the product, you may want to find another product. You should be passionate about your product because it works not because it makes you a ton of money. If you have the passion for the product, your prospects will also have a passion for the product and it will show up in the form of good commission checks.
Tip #4 – Is your MLM product affordable?
You don’t want to choose to market something that no one can afford to buy. I don’t want you over analyze the price too much. People do buy luxury cars and spend a lot of money to do it too but you don’t see the masses going out to buy them either. If the benefits of the product outweigh the cost, you have made a good choice.
Tip #5 – Is there a demand for your MLM product?
You can have everything else but if there isn’t a demand for your product, you won’t make any sales. How do you know if there is a demand for your product. One way to know is to do an Internet search. Put in your what your product is (ie, energy drink, legal service, vitamin supplement, etc.) and see what comes up. If there are a lot of choices, then the chances are pretty good that there is a demand for the product. Remember though that you don’t want so much competition that everyone is fighting over the few customers that are looking for the product.
Tip #6 – What is the commission on selling the MLM product?
It really doesn’t make sense to go through the marketing process, if there isn’t enough profit in it for you. You are in business to make money. Your compensation should be at least 20% but not so much that you begin to wonder why they are paying so much. You want your MLM product to be legitimate and if a MLM company is paying something like 70% in compensation, then you may want to ask yourself why. If they are paying just to get the lead, it may be okay. I see a lot of affiliate programs that pay out huge commissions because they want the lead so they can make money on back end sales.
Okay, I’m tapped out of tips on how to choose a MLM product. That’s it for Day 1. If you are involved with a network marketing company that has a bunch of products, you will have some homework to decide which one you want to market. If you only have one product, then you will be all set for Day 2 for our “8 Days To MLM Sales” course, where we will be discussing how to identify your target market.
Day 2 – Identify Your Target Market
Day 3 – Create A Prospecting Script
Day 4 – Prepare A Presentation That Converts Prospects Into MLM Customers
Day 5 – Create A Closing Script That Eliminates Objections
Day 6 – Warming UP, Why Practice Makes Perfect
Day 7 – Getting Targeted Leads
Day 8 – Putting It All Together For MLM Sale
