Steps
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1Investigate companies. Choosing the right company is key to becoming a successful network marketer. Quick and easy internet searches can usually answer many of the questions you may have. Do some research to determine which company is best for you personally. Some questions you should ask yourself when researching companies are: [1] X Research source
- How old is the company? Is it well-established or is it just starting out?
- How are the company's sales? Are they rising or falling?
- What is the general reputation of the company? Reviews and blogs can usually give you a good idea if the company is reputable or suspicious.
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Look up CEOs and other company leaders. Keep the same things in mind as when you investigated companies. Is the company leadership reputable and law-abiding? If company leaders have been accused of carrying out scams or have had legal trouble, you may want to avoid this company.Advertisement
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Investigate the products or services the company sells. Since you'll be responsible for pitching and selling this product, make sure it is reputable. Some MLM companies market questionable or dangerous products, and you could face legal action if you take part. You should keep the following in mind when considering a product:
- Is this product safe?
- Are the product's claims backed up by legitimate research?
- Would I use this product?
- Is this product priced fairly?
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Question your recruiter. When you've found a company you're interested in, you'll likely meet with a recruiter or another representative. Be skeptical during the recruitment process. Remember that your sponsor makes more money if you sign on, so they may not be as open with you as they could be. Don't get distracted by promises of how much money you'll make, and really think about what you're about to do.
- Ask direct and specific questions. If you find the answer too vague, ask for clarification.
- Ask exactly what the company will expect of you—how much are you expected to sell? How many people are you expected to recruit? Are you required to take part in training programs?
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Read your contract carefully. Don't sign anything right away. Take some time to read over and understand the entire contract. You may even want to consult a lawyer or accountant to make sure you're getting a fair deal and that the company is legitimate.
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Watch for red flags. According to the Federal Trade Commission, some businesses posing as MLM companies are actually illegal pyramid schemes. Pyramid schemes scam recruits into buying into a company and almost always result in a loss to the recruit. Some things to look out for
- If a company makes more money selling products to distributors than to the public.
- If a company makes more money recruiting members than by selling products.
- If anything seems wrong to you, don't sign a contract.
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Draw up a business plan. When you have a few potential companies in mind, write out your plan for building and expanding your business. Even before you've officially aligned with a company, it helps to have this plan figured out early. That way you can hit the ground running when you do eventually start at a company. Keep these things in mind when designing a business plan:
- What product or service are you intending to sell?
- Who is your intended market?
- How much time will you dedicate to this? Will it be a part-time commitment or are you planning on working 7 days a week?
- What is your goal? Do you want to get rich or just make some extra money?
- Think long-term. Where will you be in 5 years? 10 years?
- What is your marketing strategy? Will you make cold calls? Use the internet or social media? Go door to door?
- You can update or change the plan as needed, but it helps to have a guide when you're just starting out.
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Choose the right mentor. In most MLM models, the person who recruited you becomes your mentor. That mentor will coach you through the early stages of your work. Typically, the more successful you are, the more money your mentor makes, so it is in their best interest to be there for you. In a mentor, you'd want: [2] X Research source
- Someone who is available if you need help.
- Someone who you could see yourself working with.
- Someone who will be honest with you if there's something you can do better.
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Study your products and know them well. It's your job to sell these products, so you should dedicate yourself to knowing everything about them. You'll need to plan how you will pitch the product to potential customers, how to answer any questions or doubts they may have, and any relevant research or studies that support your product. [3] X Research source
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Attend company meetings and training calls. These will help you make new contacts and learn new skills. You can leave them better prepared to build your business successfully.
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Build new leads. In network marketing, leads are potential customers. You'll need to keep finding new leads if you want to keep making money. There are various ways you can find new leads, and you should use multiple strategies to attract the largest market possible.
- Social media is a cheap, easy way to generate buzz for your product. Start a page for your company on each of the major social media sites and update them all regularly.
- Buy advertising space online and offline. Websites and newspapers can help build awareness for your product.
- Cold calling, though old-fashioned, is still a popular method of finding potential leads.
- Personal interaction is also useful. Always have business cards on you and be ready to talk about your company. You never know when you may come across someone who is interested in what you have to offer.
- Issue a press release. Press releases can be a great way to spread the word about your business gain more popularity, and be known by more people. With press releases you can publish articles about your business on hundreds of news sites, attracting potential new customers.
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Follow up with all leads. To turn leads into paying customers, you'll have to follow up with them and pitch your product.
- Set up your web page with an autoresponder designed to contact people who visit your page.
- Manage all your contacts in an organized file with all their information easily accessible.
- Have a sales pitch ready at all times when you contact a lead.
- Try more than once to turn a lead into a customer. Just because someone wasn't interested once doesn't mean they will never be interested. Be careful not to overdo it, though—you could easily get a reputation as a spammer, which can hurt your business.
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Recruit new members. Just like you were recruited to a network marketing company, you'll have to recruit members to your team if you want to be successful. Always be on the lookout for new prospects who you think will be valuable additions to your team. Try recruiting services, like MLMRC. Also, you'll want someone who is personable, a good salesperson, and a team player committed to cooperating with you.
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Mentor your recruits effectively. If recruits are successful, you make more money, so you should be prepared to train them well. This may be a substantial time commitment, even up to several weeks. But you should understand that you're building a team and it is in your best interest to spend enough time making sure your recruits are competent enough to go off on their own. [4] X Research source [5] X Research source
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Give your team members good commissions. By compensating your recruits well, you're ensuring that they have a good incentive to sell. That way, they'll earn more money for you and for themselves. It will also help keep them around longer, which is good for you—you want to keep talented sellers on your team to keep your business successful.
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Consult professionals about your business. Remember, you are responsible for everything associated with running a business—taxes, laws, etc. It helps to have an accountant and lawyer on hand to help you manage your business in the most effective way possible. [6] X Research source
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Expert Q&A
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QuestionWhat are the skills of a successful entrepreneur?Seth T. Hall (ICF ACC, CLC, and MNLP) is a Certified Life Coach and Founder of Transformational Solutions, a Los Angeles-based life-coaching company that helps people achieve their toughest goals, find their own voice, and think outside the box. He has been a life coach for over 10 years, specializing in personal development, relationships, career and finance, and wellness. He has helped his clients break the negative cycles in their lives and replace them with a positive, proactive mindset. Seth believes that everyone has the potential to live a fulfilling and rewarding life, and works passionately to help them reach their full potential. With a deep understanding of how our minds work and the power of positive thinking, he encourages his clients to find their unique paths in life and find success on their own terms. He is a certified master practitioner of Neuro-Linguistic Programming, a featured co-author for WikiHow, and co-author of "The Mountain Method”, “The Happy Tiger”, and “The V.I.S.I.O.N.S. Program”.A successful entrepreneur takes time to take care of themselves. They know their own strengths and weaknesses, and are good at collaborating with others and getting help from people who know things that they don't.
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QuestionHow can I build a team and enhance prospects if I am already in network marketing?Community AnswerWork with people interested in your business or products. Don't focus too much on people who are not interested in your business.
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QuestionHow do I convince someone to join a business?Community AnswerIt's much like selling a product or service. Prepare information about incentives, commissions, future plans for your business, etc. The right people should come to you.
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Tips
- This is not a get rich quick scheme. It is a substantial commitment, and you should be willing to spend the time required to make it successful.Thanks
- Seek advice from those who have succeeded in network marketing.Thanks
- Don't reinvent the wheel. Follow those before you.Thanks
Tips from our Readers
The advice in this section is based on the lived experiences of wikiHow readers like you. If you have a helpful tip you’d like to share on wikiHow, please submit it in the field below.
- Make sure it's a lasting product (not just a fad0 and something you love and can use every month. Consumable products are often best for this type of business! If you are consistent, you will create residual income with the right company!
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Warnings
- Always keep your business legitimate and law-abiding.Thanks
- Make sure you don't quit your fulltime job right away. You should only leave your current employment when you're certain that you can live on your earnings from network marketing.Thanks
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Expert Interview
Thanks for reading our article! If you'd like to learn more about network marketing, check out our in-depth interview with Ernest Sturm .
References
- ↑ https://www.entrepreneur.com/franchise/7-tips-for-network-marketing-success/299715
- ↑ https://www.entrepreneur.com/franchise/7-tips-for-network-marketing-success/299715
- ↑ https://www.entrepreneur.com/franchise/7-tips-for-network-marketing-success/299715
- ↑ https://www.entrepreneur.com/franchise/7-tips-for-network-marketing-success/299715
- ↑ http://www.forbes.com/sites/chicceo/2013/04/04/the-correlation-between-mlm-success-and-mentorship/
- ↑ https://www.entrepreneur.com/franchise/7-tips-for-network-marketing-success/299715
About This Article
Article Summary
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To succeed in network marketing, start by finding an established, profitable company with an appealing, effective product. Organize a meeting with a recruiter and ask any questions you have about the company, and look at income disclosure statements on the company website to see what the average seller makes. Be sure to learn your products well, and build connections with prospective customers. Follow up with all leads for sales, and make an effort to recruit new salespeople. For tips on selling products and recruiting new members, read on!
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