Are you interested in Network Marketing ?
Do you want to know more about it, including techniques for sponsoring ?
Let us guide you !
What is network marketing ?
Network marketing, or also called MLM, Relational Marketing, Multi-Level Marketing, is an activity consisting of promoting products or services through a network of people.
The goal is to develop a team of distributors who will in turn promote these products or services.
Each person in the network can earn commissions on the sales made.
You yourself on yours and also on those of a member of your “lineage” and this on several levels depending on the company for which you collaborate.
Is it legal and where to verify that a company is serious ?
Network marketing is perfectly legal and cannot be equated with a pyramid scheme.
Indeed, this activity does not allow a person to earn money by only recruiting new members.
It is imperative to check this first point well !
However, it is important to check that the company is serious before committing.
To do this, check that the company is registered with the trade and company register, and that it is in compliance with your country legislation.
You can also check the reviews and comments of the members on the internet.
Beware of reviews that are too excessive in the sense of super good plan, easy money, which only seeks to sponsor you.
What are the most well-known companies ?
There are many network marketing companies offering this type of activity.
The most well-known are :
- Forever Living,
- Tupperware, the famous little plastic boxes
- and Natura
You can see that some of these have been around for a long time.
This indicates that the BNM business model is viable in the long run if the business is run properly.
What types of products or services can be found in network marketing ?
The products or services offered by network marketing companies MLM are very varied.
For example, one can find products :
- health products,
- maintenance products
- technology products
- or real estate
Others present themselves as high-yield investment solutions.
Beware, however, as none of them have passed the medium-term mark…
Can we practice at home ?
Yes, you can absolutely practice network marketing from home, at home.
As a member, you can thus promote the company’s products by using the tools and supports made available to you both in person and on the internet and these social networks.
You can also organize meetings and presentations at home.
You are free to organize yourself as you wish.
You are now the leader of your business !
How to get started in network marketing
It is important to get well trained before starting in network marketing.
In fact, it’s worth asking before you get started if there is an in-house training system.
This can be an indicator of how serious and committed the company is to its employees.
Ask about the products and services offered by the company as well as the tools available to you for their promotion.
It is also important to get trained in sales and prospecting techniques otherwise your chances of succeeding in this environment will be relatively low..
Make sure you are well informed on the current legislation so you don’t make any mistakes.
How to prospect and sponsor for your business
Prospecting and sponsoring are two essential steps to success in network marketing.
To prospect, you need to target people who are likely to be interested in the products and services offered.
For example, one can use :
- social networks
- or websites.
To sponsor, it is then necessary to present the company’s products and the system of network marketing.
One of the techniques when you are just starting out and you don’t know either the products or the company too well yet is the 3-way presentation : the prospect, your sponsor and yourself.
The idea is that you make the introduction of your sponsor, who takes over for the business presentation.
This way you have a private lesson and after a few presentations of this type you will be able to repeat the operation on your own.
What the name list is for
The name list is a very handy tool for prospecting and sponsoring.
This is a list of people who might be interested in the products and services offered.
Some companies insist that you contact ALL the people you know, from your phone contact list or from your social networks…
We are not particularly fond of this concept.
Your list can also be built from directories, forums, other social networks or websites.
What are the main objections of prospects ?
Prospects may have objections to the products and services offered.
The most common are :
- the price,
- lack of time,
- the lack of knowledge,
- the lack of trust in the company, pyramid society
It is important to overcome these objections by explaining the benefits of the products and services offered, explaining the sales techniques and reassuring prospects about the safety and legality of the company.
Remember to prepare for objections, you’ll be halfway to the sale.
The other half is you, your behavior, the feeling you will have developed with your lead.
And the great, if not the greatest, SECRET…
It’s the FOLLOW-UP !
Don’t underestimate this fundamental point.
What is cold calling ?
Cold calling is a technique widely used in network marketing.
It is your approach to a prospect with whom you have never had a particular connection.
It can be practiced anywhere, from a person you pass in the street to the terrace of a café, to the cash register while you are doing your shopping.
Not everyone is comfortable with this technique.
But we all know that it is by practicing, the good practices, that we eventually get there too.
You’ll probably have to step out of your comfort zone to succeed at this exercise.
What is the definition of hot prospecting ?
Hot prospecting is, unlike cold prospecting, prospecting your family, friends, acquaintances, colleagues…
Normally you might think that it is easier.
Yes… And no.
Some people will feel obliged to take a small product from you, to make you happy, because you’re going for it.
Okay, and then what ?
Then, the person may not take your product back as often as you would like.
Something to keep in mind !
Can we sponsor from social networks ?
Yes, it is possible to sponsor from social networks such as facebook, Instagram and others…
Some products or services are more suitable for this than others.
However if you are organized, patient and you really create a good contact then everything becomes possible, no matter your product or service.
The product, in the end, is you !
LinkedIn can also be a source of leads to investigate.
How to develop a network
To develop a network that grows itself, it is important to properly train its members.
It is also important to provide them with tools and materials to enable them to promote products and services.
Some tools today offer possibilities to automate certain tasks, fulfilled by apps that you can connect together to gain efficiency.
Finally, it is essential to provide them with sales and prospecting techniques to enable them to recruit new members.
Your new members will be your referrals and you will be their sponsor.
Other terms exist: upline for the sponsor, downline for the sponsored members or mentor and students…
Another way to develop your network marketing can be the creation of a website or a blog, this is called attraction marketing.
This is a long-term work, which requires a lot of energy and perseverance because the first few months you will not have any visitors, unless you promote it or go through advertising.
And finally, The question to always ask !
Even if you get a rejection from your prospect.
- With everything you know about our product/service now, who would you recommend it to ?
You never know.
Remember, sometimes it’s the tree that hides the forest !
Mostly it’s a simple way to potentially be able to grow your network.
What is duplication
Duplication is a technique widely used in network marketing.
It involves replicating the behaviors and techniques of the most successful members to improve the performance of other members.
It is in your best interest to pass on this information to everyone who wants to develop their own network of distributors.
Be careful, never force the hand of someone who is only interested in selling products.
With time, and your example if you are successful, they are likely to change their mind.
Can you make a successful living in network marketing ?
Yes, it is possible to make a living in network marketing.
However, the activity can also be used as a supplemental income.
Network marketing is an activity that requires patience, perseverance and commitment to succeed.
It is all relative though because we do not all have the same dreams or needs depending on our personal definition of success.
In conclusion, network marketing is a very interesting activity, very enriching on a human level but which enjoys a bad image because of past scams.
It is often called by its detractors, pyramid scheme or Ponzi scheme.
Ponzi and Madoff are 2 famous people who used a pyramid scheme with investors too attracted by the lust of abnormally high and unusual returns.
Also we repeat ourselves but Network Marketing and financial system should make you be very careful.