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How to Choose a Network Marketing Company

MLM Company

Choosing a MLM company is the most important step in entering the world of network marketing. Everyone has different needs and expectations, and so you must carefully choose what kind of MLM product you want to sell and what kind of MLM company will pay you for it. A poorly chosen company can result in loss of money, time, and even confidence in network marketing. Conversely, when entering a good and proven system, one can take full advantage of business opportunities it offers. Give choosing your MLM company enough time, it will pay off.
Nowadays, there is a huge number of companies operating on the principle of network marketing. Many are already established and proven, while many other try to pretend they have been here for decades even though they had been established a few weeks ago. It is always necessary to carefully examine the MLM company, its products, and the way it treats its distributors. If you want be successful in MLM, you need the right company.
It is likely you get MLM business offers very often. Whether from family members, work colleagues, or classmates at school, always first get as much information as possible about the offer. The number of companies and products and services they offer is enormous, and you must choose the one that suits you best. If you enter a MLM program just because the offer comes from a close friend, you can lose plenty of time and – in the worst case – money.
Still, choosing a solid MLM company that has many positive reviews and plenty of satisfied distributors does not automatically mean that you will succeed. Others’ success does not guarantee your success.
To build a successful business will take a lot of work, high commitment, patience, and positive attitude. Network marketing is about selling products and recruiting new distributors, and that’s something no system will do for you. An appropriately chosen MLM company will give you a tool with which you will be able to effectively build your own team of motivated people, a circle of satisfied and returning customers, and ultimately fair and sufficiently high financial rewards for your efforts. It will be up you to use that tool the best you can. So how to choose a network marketing company?

Your Expectations and Goals

Working in network marketing is suitable for a wide range of people. Some people use it to ensure a stable additional extra income, others aim to create a huge business with astronomical profits. Before you start thinking about entering into an MLM company, think first about your expectations. What can you give MLM and what do you expect to get in return?
Whoever has a permanent employment and has no other income should not enter an MLM program that will be a full-time job. Some companies have their compensation plan set up so that without constant work and recruitment of people your income gets significantly reduced. Such programs are suitable for those who can afford to invest all their time into the program.
On the other hand, if you have to go to work, select an MLM business that will allow you to work in your spare time without having to meet strict monthly sales volumes. In that case, you can work your MLM project only when you have time to gradually build extra income. If so, you cannot expect to get rich quick in a few months. The amount of time invested is proportional to how fast you start earning real money in network marketing. If your expectations are realistic given your options, try to avoid disappointment and rapid loss of motivation when your MLM business does not expand as quickly as expected.
Never leave your regular job just based on promises of someone who wants you to join an MLM program. Results may not occur nearly as fast as you were told or as they did with others. This strategy will help you prevent problems that come along with failure.
When planning your business, think also about the other things in your life – family, friends, hobbies. MLM is just like any other work. If you give it too much time, you can end up losing more important things than the opportunity to earn good money.
The main benefits of network marketing are mainly financial independence and the freedom that it brings. And that’s something most people want to get when entering MLM. The ideal way is to enter MLM, work in it along with a regular job, and when you feel you earn enough money from MLM, leave the job and start working in MLM full time. That’s the way to achieve truly great results.

What You Want To Sell

To achieve success in MLM, you must believe in the product you sell. Product selection is the first step in choosing your MLM company. The product forms the basis for honest network marketing. And if you are not totally convinced about its qualities and benefits, you’ll hardly be able to talk others into buying it. Also, it is not likely you want to sell low-quality overpriced stuff to your friends, family, or business partners. Your reputation would suffer quickly, and you would end up with zero sales and possibly damaged relationships with your loved ones.
You need to build a positive relationship with your MLM product or service. You should be familiar with the given field, understand it, and preferably make it your hobby. If you act as an expert on the issue, it will be much easier to sell the product. People will seek you themselves, on the web and social networks. As a recognized expert, it will be easier to get recommendations from satisfied customers and thus new leads.
The nature of the product divides many MLM companies into men and women categories. Although there is naturally no rule that would allow distribution of products to only one sex. More often, however, you will come across women sellers of cosmetics and vice versa men sellers of gym supplements. In practice, it does not matter if you honour this rule at all. The important thing is that you are interested in the field, because customers will know.
Do not choose MLM companies that sell products or services that leave you cold. To succeed in such business would then be very difficult. Better pick a MLM product that is of high quality, convenient, and that you will use yourself. Convincing other people about its qualities will then be much easier. When you talk about a product that you trust 100%, people will automatically have a positive and pleasant feeling about the deal.

Questions to Ask When Considering an MLM Company

If you get an offer to work in MLM, check out all the following points and make sure the offer is the right for you. Many people do not spend enough on evaluating individual offers, which can result in frustration and financial loss.

MLM Products

It is very important to evaluate the product that the company sells. Successful sale of MLM products depends on many factors. Even if you like your products and you are interested in the field, you need to consider several aspects before you decide to enter the system and sell the product.
The most important factor is, of course, quality. Unfortunately, many products that are distributed through MLM are inferior. The pressure on minimizing production costs and the ability to offer higher commissions to distributors often come at the expense of product quality. Before you decide to sell a product, try it out for yourself or let your friends or family do it. Go online and try to find some customer reviews not written by MLM distributors.
The quality of the product or service will decide whether to customers will come back and thus whether you keep good sales. Moreover, customers can share their positive experience with the quality of MLM products with other people.
Conversely, nobody will come back to buy poor-quality products. A more likely scenario is that they will slander it.
Each MLM product should have all the necessary certificates. This is especially true for cosmetics and wellness products.
A crucial role in your business will always play the price. If your MLM product is unreasonably expensive given its quality, customers will look elsewhere.
If you want to sell an expensive product, the price must be in line with the quality. In that case, however, you need to understand that your target group will be narrowed down only to the wealthier customers. It is therefore preferable to sell medium-priced products of satisfactory quality. Such products can appeal to a wide range of consumers.
The final price of the product is also determined by whether the MLM company produces its own product. Companies with their own manufacturing facility are usually able to offer a cheaper product of the same quality than companies who have their products produced by an external company. Own production also guarantees greater stability and control over the company’s own products.
If you are planning a long-term successful business, you should have a product that is somehow unique and hard to substitute. For instance, if your MLM company owns patents or unique know-how, you have a guarantee that the same product will not be sold elsewhere in the foreseeable future. You would not want to start with network marketing only to stumble upon your product being sold in supermarkets for half the price.
MLM products must never be such that they are bought only by people who want to engage in the distribution network and capitalize on network marketing. In that case, you will never get end customers. In addition, such an MLM program borders on illegality because the only way to generate commissions is to register new sellers who buy the product. Primarily, the product must be attractive to ordinary people outside the distribution network.
Another aspect you should take into account when evaluating MLM products is whether it is consumable goods or not. If you offer products that everyone normally buys only once in a lifetime, you will need to keep looking for new customers and recruit new distributors. You had better avoid such MLM programs because creating a passive income here would be extremely difficult.
On the contrary, sustainable high sales volumes can be achieved by products such as cosmetics, food supplements, or certain financial services. This, however, obviously only applies if they are of high quality. Selling quality products that your customers keep consuming and ordering is the right way to create passive income from network marketing.

How Long the MLM Company Operates on the Market

When entering MLM, it likely you will aim to build a stable passive income. That is the most interesting thing MLM offers. If you are to keep your income, your company needs to stay around. Unfortunately, the reality is such that the vast majority of new MLM companies will wind up within the first few years (some sources say the number is even 90% of MLM companies to close their business during three years).
If you are considering entry into a MLM company, you should first find out how long it has been on the market. Do not be tempted by claims of a unique opportunity when entering a completely new MLM company. This is not to say such new company can’t be a good opportunity too, but you must be extremely careful in that case. Such companies may not last long, and if entering the MLM business cost you a considerable financial investment, you can end up with a severe loss.
When recruiting new members, distributors like to highlight the benefits. They say the market is still unsaturated and that distributors are few and with limitless future profits. In a year, it will not be so profitable, they say. That would, in fact, mean that the company has no future if it would not be advantageous to enter the distribution network any time later. How then will you look for new people to your team?
Entering a newly established MLM company is bit of a gamble. Sometimes you really can get rich, but mostly you will close the business before earning any real money. The money and time that you put into building your business will be lost forever.
If you don’t like to gamble, do not enter into these young companies. Rather pick an MLM company that has already had several years of successful operation. There are usually many reviews about such companies you can find online. The fact that a company has been selling its products through network marketing for the last five years itself indicates that its products and their quality and price are indeed competitive.
Still, if somebody offers you to enter an MLM program that has been in business for many years, it does not automatically mean that it is the best choice. But at least there is smaller chance the company will go bankrupt before you even get settled in the new business and make some money.
Some MLM companies have been operating for decades. They have tested products at reasonable prices, their compensation plan is well set up, and nothing prevents them from staying around for another decade. One reason why you should not enter such companies is that such companies must have already built their distribution network and so there should not be much opportunity for other dealers. It is true that in these programs distributors may get rejected because their potential customer already purchases the product from someone else. However, complete saturation of a market never takes place. New generations of economically active consumers keep growing, and they always present a new target group.
Try to find out who owns your MLM company, its history, and if the same people have not previously bankrupted other MLM projects. Make sure that the company does not drown in debts and has cash reserves for the payment of commissions and the growth of the business.
Selecting tested MLM companies minimizes the risks associated with network marketing. A long-established company usually provides its distributors with quality products and suitable conditions for the development of their businesses.

Where the Company Operates

Not all MLM companies offer its products globally. Some companies operate only in selected markets. You should check where it is possible to offer the product and where the company distributors can come from.
Some companies that use network marketing, for example, only work in the United States. In that case, it is not possible to bring a new distributor, for example, from Europe.
For those who want to start a big business, it is important to check on what markets the MLM company operates or where it plans to expand in the future.
Larger companies usually have branches in every country in which they operate. It’s always good to work for a company that has its own office in your country. In case of any problems, you can turn to it for help and assistance and resolve your issues directly with a representative who speaks your language. For example, if there is a problem in the payment of commissions or delivery of products, it is more efficient to deal with these matters through a local branch than a far-way headquarters.

Direct Selling Association Membership

Direct Selling Association (DSA) is a national trade association that brings together companies selling their products through network marketing. Its members include more than 200 companies operating in the USA. The organization aims to protect independent distributors, their customers, and companies distributing their products through direct selling. The association oversees compliance with a high level of ethics and customer support of the member firms.
DSA aims is to keep the good name of network marketing. It inspects companies, their operation, compensation plans, and compliance with the principles of communication with customers.
MLM companies that are members of this organization are usually certified companies with a good history. Their distributors must comply with basic ethical rules when selling their products and even when recruiting new distributors. Membership in DSA minimizes the risk of being involved in a fraud scheme.
If you can choose, prefer MLM company which is a member of DSA. This will protect you against rapid loss of money, if your company turns out to be dishonest.
For the list of companies which are members of the Direct Selling Association, visit its official website. Each member is also given the type of products or services it sells, including important contacts and telephone numbers.

Compensation Plan

MLM compensation plans determine what commission you get for your sales and for the sales of your team. It’s a very important document. Never enter any MLM program without a complete understanding of its compensation plan.
Companies often advertise high commissions for sales as the total amount they pay into the distribution network. However, each distributor gets only a fraction of this money because the total commission needs to be divided throughout the entire structure. Sometimes, MLM companies even do not pay distributors the entire amount of commission because they failed to meet various sales targets.
Always ask the person who offers you the business opportunity to give you a detailed explanation of the compensation plan. You should learn how many new distributors can register directly under you in the network, from how many levels you get paid commissions, or how commissions are graded at different levels. Also, find out if the payment of commissions is conditional on achieving monthly sales volume of your own or of your entire team.
Setting of the compensation plan determines how quickly a new member starts earning money. Sometimes, it is necessary to build a fairly large team of people in order to create even a small income. This usually takes a long time and no one wants to wait for the first payment half a year after the beginning of this intensive work.
Your MLM company should have a compensation plan set up so that even novice distributors had the opportunity to earn money within the first one to two months of work so that at least they could cover their expenses associated with entering the program. If the plan is set up so that an interesting income can be reached only by distributors positioned high in the structure, you will soon get demotivate and so will every member you recruit. Most of them will soon leave the business and your business will get nowhere.
Sometimes a MLM compensation plan is set up to support end dealers, sometimes it favors previously registered distributors with a large team under them. When considering signing up for an MLM program, think about what your goal is. You should decide whether you want to sell products to end consumers or build a large team of distributors.
Unfortunately, it often happens that even distributor who work in MLM for a long time do not really know their own compensation plan. They don’t know exactly how commissions are calculated from different levels of the supply network, cannot explain the system of special bonuses and rewards, and cannot even tell you what the conditions for the payment of money are. You should avoid such sponsors because they you will not be able to help up with your business when that need comes.
When choosing your network marketing company, you will usually come across one of these compensation plans: unilevel, binary, stairstep breakaway, or matrix. Each has its advantages and disadvantages.
The unilevel compensation plan allows you to register an unlimited number of first-level distributors, but the number of levels from which commissions are paid is limited. Of all the MLM compensation plans, this is probably the least suited for individuals who plan to build a large sales network.
The binary plan, in turn, allows you to register directly under you only two distributors, other distributors must be placed deeper into the structure. To achieve maximum profit, sales volumes in individual branches need to be balanced.
Stairstep breakaway is a widespread compensation plan which is focused primarily on meeting sales volumes at specified time intervals. Here, distributors climb the career stairs depending on the performance of their team while gradually attaining higher commissions.
The matrix compensation plan has a fixed width of the structure and the number of levels from which commissions are paid. The matrix compensation plan has a popular feature called spill-over where distributors in your upline must put their new dealers into your team because they have reached the maximum allowable limits.
When choosing a MLM company, you must pay close attention to the compensation plan. If so, you might avoid possible disappointment in the future when you find out that the commission system works completely differently than you thought.

Initial Investment

The size of the initial investment is obviously an important factor when deciding about a business opportunity. But it’s not just about how much money you have to pull out of your pocket. The investment you have to make to be even able to participate in the program also determines how difficult it will be for you to register new distributors into your team. When starting a business, each of us is willing to give a different amount of investments. What may seem like a reasonable amount for some may not be acceptable for others.
Another problem is that if the network marketing company requires an unreasonable amount of purchases of the product to enter the program, it might be in violation of the laws of some countries. They prohibit the so-called front end loading, which is a practise of forcing distributors to create a large stock of products. These MLM schemes are based only on recruiting new resellers who themselves buy large numbers of products. Very often, distributors then have a problem with selling such amounts of goods.
Calculating the return on investment in MLM is very difficult. It is hard to guess how fast you manage to create some income. There are many variables that you have to put into the equation. How many regular buyers of your products you get, how often they will order goods, how many new distributors you register into your team, how they will operate and further expand the team.
You certainly cannot rely on promises of the person who tries to lure you in to an MLM company. Their objective is to involve you in the system, and not all distributors are exactly honest when doing so. Obviously, there is a difference when you are dealing with a family member or a complete stranger. Never base your calculations on the results of someone else, whether they are real or imagined.
Doing reasonable estimates allows you to approximately determine what income you can achieve, for example, after three months of doing business in MLM. Such calculation can also serve as your goal and motivation, but you cannot count on it or plan your future around it.
Doing MLM business is never risk-free. You will not have a stable income until you build a solid network of distributors who will generate regular commissions.
Sometimes, your investment in MLM may not return at all. And it’s not only about if your company winds up or even deceives its distributors. It may be that you simply fail to succeed. You may realize that this type of business is not for you, even though you had thought you could do it. People around you may react on your offers differently than you had originally anticipated. There are many reasons why you can fail in MLM.
Never invest too much money in your MLM business. The golden rule says, never invest more than you can afford to lose. Avoid business opportunities that require huge investments. Do not join the ranks of those who put their savings into a dubious scheme, left their jobs, and then ended up with no money and no income because they overestimated their abilities or were deceived.

Support and Training

A good MLM company should provide its distributors with their own training courses. If you want to be successful, you have to be well trained in the products that you sell and in the methods of recruiting new members for your team.
Not every sponsor can be a good coach. Even if the person who brought you into your MLM program is himself well-trained and understands the system, he may not be good at teaching. Therefore, when choosing a network marketing company, make sure that the company offers its own training courses.
When you begin to work in network marketing, your first goal should be to get as much knowledge about the product you sell as possible. You should also train sales and communication skills.
Perfect product knowledge is a condition for the successful acquisition of satisfied and loyal customers. You must be able to advise your customers with the choice and emphasize the benefits of your offer. Therefore, pay close attention to studying informational materials about products and to corporate training.
Network marketing requires a high level of salesmanship. If you do not have a natural talent, try to attend as many coaching courses as possible. Meetings with successful people who master these skills can also help you to move forward.
Your MLM company must offer you regular training courses where you learn about new products and current business and marketing strategies, and let you improve your selling skills.
When evaluating MLM companies, also observe what kind of support they provide to their distributors and end customers. Does the company have local branches? Is customer service in your language? How does the company handle complaints? Many reviews can usually be found on online discussion boards. If the company does not resolve problems properly, you will certainly read about it somewhere.

Choosing a Good Sponsor

Selecting the right sponsor is as important as the choice of the company itself. If you already know for which MLM company you want to work, you have to find a person who will register you into the program and who will cooperate with you.
Each networker prefers a different strategy for sales, reaching new people, and building a team, and your future sponsor should be in line with your ideas in this respect. Some prefer online methods when building the team, some use more traditional ways.
Your sponsor in network marketing should primarily be a leader. He should be able to pass on his experience, inspire his team members, provide them with knowledge, and assign tasks so that the business moves forward. The sponsor must have a positive attitude toward his job and be able to motivate his team. A good MLM sponsor is constantly actively building up the business. He follows current trends, devises new strategies, and works on his skills and education.
Do not start MLM business with someone who will not have enough time for you because he has a large number of distributors under him or because he is busy with a completely different activity. Especially in your early days you will often need his help.
In today’s world of network marketing, a key role is played by modern technologies and the internet. Your future sponsor should be adapted to this trend. Avoid people who completely reject online methods for building their business.

Finding the Right Company and the Right Sponsor

You have probably received many network marketing offers in your life. If, however, none was the right for you or you were not satisfied with the person who should have been your sponsor and mentor, you still can look around for other business opportunities.
Most MLM companies have established websites where you can learn about their products and offers for distributors. Social networks are full of discussion groups and MLM job offers. Try to get into groups that connect people working in MLM business in your area. You can meet interesting people and compare offers of various enterprises and companies.
If you want to meet MLM professionals from your country or from around the world, create an account at MLM Gateway. You will be able to reach people working in the field of network marketing that interests you. You can listen to their offers and choose the right partner to enter the world of network marketing.
Choosing the best MLM company may not be a simple task. Comparing various options and evaluating offers take time and patience. Entering MLM is a serious matter that often requires a financial investment, so do choose carefully.

What is Network Marketing

What is Network Marketing

Lead Generation

You can come across the concept of network marketing, often referred to as multi-level marketing (MLM), almost everywhere. You hear about it on the Internet or social networks, from your colleagues, classmates, or family members. So what is it about? http://www.HomeProfitCoach.com/?rd=lt7fzCja What is so interesting on this business? Why do so people keep offering you to participate in this money-making system?
Many people have MLM associated with something illegal and deceptive. Indeed, there are fraudulent systems which in some respects resemble MLM. This sometimes leads to misinterpretation of this business, which is otherwise perfectly legal and based on common business practices. Honest network marketing has a lot to offer – great money, flexible working time, independence. However, this is not easy to achieve. Building a successful MLM business takes a lot of work, learning, and patience.

So what is MLM?

Network marketing is a business model in which the dealer is rewarded not only for the sales it makes but also for the sales of other dealers he has brought into the system. Therefore it is called multi-level marketing. Commissions are, in most cases, paid from multiple levels of distributors. In MLM, the commission system is called the compensation plan.
Network marketing is a method of direct sale, where the supplier company creates conditions for individual, independent entrepreneurship. Dealers, who are not employees of the supplier company, can mediate entry of other dealers into the supplier structure. This creates a system of independent distributors who are rewarded for sales of products and services they make themselves and for sales made by other dealers below them in the structure.
Companies that use network marketing to distribute their products tend to have significantly lower spending on conventional advertising because information about their portfolio is spread through a network of dealers. They mostly sell their products to people in their neighborhood, to family members, or colleagues. With the growing the number of dealers also grows brand awareness. Companies are using MLM to often reach audiences that would be otherwise hard to reach using traditional marketing methods.
One of the oldest companies that use network marketing for distribution is the American company Watcher’s, which has been in business since 1932. Since then, hundreds of companies from various fields, who sell their products or services through MLM, have sprung up. According to the Direct Selling Association (DSA), there are around 16 million people in the U.S. involved in direct selling, collectively generating an annual turnover of over USD 32 billion. This method of sale is, however, widespread around the world. Every day, the system welcomes thousands of new independent dealers.

MLM Criticism

Many people refer to network marketing as a fraud based on a pyramid or Ponzi scheme. There are many half-truths and myths about this kind of business. Such misleading information about MLM is widely found throughout the Internet, usually spread by poorly informed people or those who have failed to succeed in it.
The basic difference between an honest business and a fraudulent system is that through legal network marketing dealers sell real products and real services.
Many MLM systems require that new members provide an initial investment. It might be used to cover the cost of marketing materials, business cards, flyers, etc. Sometimes, the entry into the system is conditional on purchase of a certain quantity of products that the company distributes so that the new dealer becomes better acquainted with the range of products he is going to sell.
Fraudulent programs use this entry fee solely for the payment of commissions to previously registered members in the scheme. Such a system is based only on registration of new distributors and collection of entry fees without any or only minimum real sales. This initial investment is thus not used to purchase vitally necessary materials to support sales or product samples, but to enrich those higher in the multilevel marketing structure.
Collection of unreasonable entry fees has been repeatedly identified as illegal even by U.S. federal authorities. As a result, critics still refer to multi-level marketing as a form of legalized Ponzi scheme.
Honest MLM businesses are not based on mere registration of new distributors but on actual sales of actual products or services.
The primary source of income of every dealers working in a legitimate MLM company comes from commissions for sales to people who are not part of the distribution network. And this is what distinguishes a proper business model from dubious companies seeking new dealers only to collect entry fees.
The supplier company must set its reward system carefully so that its compensation plan does not cross the thin line between legal MLM programs and fraudulent systems in which the vast majority of rewards is paid for bringing new distributors who must purchase certain minimum quantities of its products.

How Does Network Marketing Work?

Doing business in network marketing has many advantages over a conventional job. MLM dealers determine their own objectives and tasks and they don’t have to listen to any boss. They are masters of their time, they can work from home, and they take time off whenever they want. This freedom, of course, comes at a price in the form of greater requirements on self-motivation. However, it is the freedom what attracts so many people to this kind of business.
The essential difference between regular job and network marketing is the money. As an independent businessman working for a company which distributes its products through network marketing, you have no guaranteed, fixed salary. If your business is not doing well or you are just starting out, your income may be very small. On the other hand, the MLM business offers almost unlimited earnings, if you’re successful. And that is something virtually no employment can offer.
The possibility of unlimited profit is based on the principle of the evaluation system of network marketing.
In direct sale, you sell certain goods or services of your supplier. In return, you are rewarded with commissions, which is directly proportional to the volume of goods sold. In MLM, however, you also get commissions from the sales of distributors that you bring to the company and from the sales of distributors they brought to the company. Modern MLM systems pay commissions from many levels of your downline, which is the structure of distributors registered under you. If your distribution network keeps adding new dealers, your income will keep constantly increasing without any limitation.
From this description it follows that network marketing does not involve only the sale itself, but also recruiting new candidates for this kind of business. Integrating new dealers and distributors is an essential part of building a passive income in MLM. Usually, many dealers try to sign up their friends, relatives, and colleagues. However, if you are to create an effective MLM business, after some time you will need to obtain a new source of other MLM contacts, called leads, you can reach with an offer. The majority of successful MLM dealers can continuously generate large amounts of MLM leads whom it can present their business.

MLM Compensation Plan

In MLM, the commission system is called the compensation plan. It is a detailed description of how the commissions generated in the distribution network are paid to all the members in the upline of the dealer who made the sale.
The compensation plan determines the amount of commission, conditions under which it is paid, dates for payment, and various bonuses and benefits. It is a comprehensive document describing the way dealers are rewarded and every new dealer must agree with it.
The compensation plan of any company significantly affects profits and return on investment of each member of their MLM program. When choosing a business opportunity, the most important part is to understand the compensation plan. A network marketing compensation plan can be very complicated, and it is up to each sponsor to properly explain it to his team.
Most dealers operating in MLM, in fact, do not sufficiently understand their own compensation plans. This leads to many misunderstandings and bad selection of MLM company itself. A misunderstood compensation plan may lead to a situation when the dealer fails to achieve its expectations.
There are several basic types of compensation plans. To understand the whole system of commissions, it is necessary to examine several parameters.
The commission the dealer receives for making a direct sale is almost never equal to the total commission which the company offers for its product and which it usually promotes when recruiting new distributors. In fact, the commission is divided into all levels of the network of distributors, and the dealer gets only its share. Its size depends on the configuration of the given compensation plan – whether it is focused more on the sale of products or rather on recruiting new distributors.
It might even happen that the company does not pay the entire amount of the commission. This is especially true for newer companies, where the depth of the distribution network is still too small and the commission may not be paid to all its levels. A considerable part of the commission is also tied to various volume and performance bonuses, which are, naturally, not achieved by all dealers. The amount that is included in the compensation plan but not paid to dealers for these reasons is called breakage.
The fact whether the system targets at front line recruits or at previously registered distributors is essential for the selection of the right MLM program. If you plan to devote more time to selling products, you should look for a company with a compensation plan that sufficiently rewards front-line dealers. On the contrary, if your plan is rather to look for new dealers to involve into the network, a plan with significant rewards for high-positioned distributors is exactly what you want.
When choosing a network marketing company, you should also consider how its compensation plan will be attractive for other potential dealers you will try to bring into the system. Programs with high rewards for front-end dealers will be interesting for people who will sell the products to a lot of people or use it for their own consumption. Ambitious and business-minded individuals will, in turn, be more interested in programs promising high commissions for members with a great network of distributors.

Unilevel Compensation Plan

The simplest compensation plan is called unilevel. In this system, you can register any number of other dealers directly under you, because the width of the level is unlimited. The number of levels from which you get paid varies by company, but is generally limited. For example, if the commission is paid up to the fifth level, you will not receive anything from sales made by registered distributors from that level down.
The more levels in the structure from which you get paid a commission, the smaller the share for each level because every dollar in commissions has to be split into more parts. Programs with a low depth of paying levels are rewarding faster and sooner. If the number of levels from which commission is paid is higher, building up a decent income takes longer but the total profit may become higher.
Network marketing distributors in these systems are trying to bring as many new people to the first level as possible to generate income from them. Because deeper levels may not generate any income at all, they strive to expand their structure mainly in width, which is not limited. As a result, new dealers often do not receive adequate support from their sponsor, who is busy recruiting and supporting large number of people.
In order to support the growth of the network, some companies use various strategies to motivate dealers to build their business teams. For example, they condition payments of commissions from deeper levels on achieving a certain monthly volume of sales made inside their own distribution network. Or the plan may be set up so that, for instance, the second level pays much higher commission than other levels. The distributor is then motivated to register new dealers under its own direct dealers, which helps them with starting their business.
The unilevel compensation plan is designed primarily for people who do not plan to build a large distribution network. These programs are mostly lacking interesting incentive bonuses and rewards and rather fit passive dealers who often use the product only for their own consumption and connect only family members or close friends.

Binary Compensation Plan

Another type of the network marketing compensation plan is called binary. It is a system in which the distributor can register only two other distributors directly under him. The MLM structure thus creates only two branches. If you bring in another dealer into the system, he must be placed in the downline of another distributor. This means that you bring new people into the team of those who registered after you.
This plan is attractive because each person in the program needs to bring only two new people to get into the reward system. If a new member has a strong upline – the structure of dealers registered before him – his network can grow without additional effort. However, this is also the biggest pitfall of the binary compensation plan. New dealers do not always have enough motivation to build their sales teams and do not bring new members into the system.
An important element of this plan is the necessity of balancing the performance of both branches. The size of the commission is, in fact, proportional to the performance of the weaker branch. If one of the two branches generates a large volume of sales and the other only very small, the total profits of the distributor are significantly reduced. This state often favors the MLM company because it keeps the commissions from the stronger branch (higher breakage). Sometimes, these commissions are at least partly converted into other bonuses which the distributor can achieve in the future.
Most binary systems allow the member to purchase multiple positions, so-called business centers. The first business center is always created after entering the MLM program with a binary compensation plan, when the member starts building its business (into two branches). If it is allowed, the dealer can purchase another center, which he can strategically place in his own downline. This usually takes an additional entrance fee, for which he can get more product samples. Each independent business center then generates its own commissions. Most often, it is permitted to acquire a maximum of three or seven business centers in a binary system, usually located right below each other.
A distributor who begins with three business centers places two of his centers into the two branches of the first center. This gives him four free branches right at the beginning, where he can place new distributors. Later, some MLM programs allow purchasing additional positions and place them somewhere in the downline, which will also support the distributors below whom the new business center is placed. Sometimes, these new positions are created automatically after generating a certain turnover of own sales.
A frequently mentioned advantage of this plan is the fact that, unlike in some other plans, commissions are paid from an infinite number of levels. Sales that occur deep within the distribution network are always counted in the volume of sales of your branches. In practice, however, this does not always generate any real commission because it must be distributed among the entire upline first.

Stairstep Breakaway Compenstaion Plan

The stairstep breakaway compensation plan is the most widely used plan by network marketing companies. The system generates really big money to a certain amount of distributors.
The basic characteristic of the system is the responsibility of each dealer for their own sales volume and the sales volume of their entire distribution network. The shape of the structure and the layout of individual distributors in the network is not so important.
The total sales volume of a distributor includes his own purchases, sales to his customers, and sales made throughout his distribution network.
As the volume of sales in the distribution network grows, the dealer gradually stairstep to higher rank position in the compensation plan and the amount of commission for sales in its downline grows. The amount of commission from each branch is different and is generally proportional to the difference between the rank at which the dealer is located and the rank achieved by distributors located in each branch of the structure.
The higher the rank the distributor reaches, the higher wholesale discounts on the products he sells he receives. This allows him to sell at lower prices and increase the sales.
At the moment any of the distributors registered by the dealer reaches the same or a higher rank position in the compensation plan, that distributor and his entire network breakaway from the dealer’s downline. This part of the network is then called generation breakaway. From these breakaway branches, the dealer usually receives a certain monthly commission. The more generation breakaways in the structure, the greater the residual income the dealer secures for himself.
In order to keep the commission coming from generation breakaways, the dealer must constantly meet the minimum monthly volumes of personal sales or total downline sales. As distributors gradually break away from the dealer’s network to create a generation breakaway, the volume of sales of its remaining network falls.
This compensation plan can offer big profits, but it is necessary to work it full-time. The need to constantly meet monthly volumes forces the dealer to constantly look for new distributors. Therefore, succeeding in a network marketing program based a stairstep breakaway compensation plan requires both great salesmanship and the ability to recruit new distributors. Without a steady supply of MLM leadsx, it is usually impossible to continually expand the team of sales people and meet sales volumes. Distributors who break away from the dealer’s network must be replaced with new ones in order to qualify for the payment of commissions.

Matrix Compensation Plan

Another very popular network marketing reward system in called matrix. This compensation plan has a limited width of the structure. Each distributor can register only a limited number of distributors into the first level of his team.
The popularity of the system stems from the possibility of spill-over. If the dealer reaches the maximum amount of distributors in the first level, all others must be placed into deeper levels. Thanks to this, the dealer supports its downline members and keeps them motivated even if they are unable to bring new dealers for some time.
Because the system does not allow dealers to have a large number of directly registered distributors below them, they can devote more time to training and support of their team members. The process of learning and collaboration within the network are thus more efficient than in unilevel or breakaway compensation plans, where you can have a team of dozens of directly registered members. If the width of the structure in the matrix plan is, for example, three, each member looks after and supports only three people, which is the perfect number for establishing close cooperation.
In the matrix compensation plan, the number of levels which generate commissions is also limited. A 3×9 plan, for example, enables you to have three distributors on the first level while commissions are paid up to level nine. This dimension of the matrix plan determines the maximum amount of people you can have in your team. If your MLM structure is full, all other distributors will be placed in positions from which you will get no commission. Some MLM companies offer a matrix compensation plan which allows to re-enter the network and expand your business by another matrix.
The way this plan works is quite easy to explain to a prospect. Dealers often like to emphasize the possibility of spill-over and promise newcomers an easy-to-build network through transfer of new distributors from upline into their own downline. You can also often encounter offers where the sponsor himself creates a distribution network for you. Theoretically, new members would have to do nothing while obtaining a passive income. The reality is, of course, quite different.
No one should rely on the fact that experienced upline dealers will give new dealers free distributors. People entering network marketing should always aim to create a business of their own.

What It Takes to Work in Network Marketing?

The process of building your own business generating an income from network marketing consists of several basic activities – generating leads, recruiting new members, and their training and management.
The first step in expanding you MLM business is gaining contacts to people whom you can offer a job opportunity in the MLM company. A constant source of new MLM leads is necessary for successful development of any MLM business. Dealers acquire these leads in many different ways. At the beginning, they usually try to contact people from their neighborhood, people they know. Unfortunately, this source gets quickly depleted and they must start looking elsewhere.
One of the ways to establish new ties is to keep a blog and be active on social networks. Writing interesting articles about work from home, network marketing, and related fields can get you a loyal circle of visitors interested in alternative earning opportunities. If you can make your visitors sign up for your newsletter, you can send them targeted business offers. By sharing your articles on social networks and participating in professional discussions you can reach an even larger audience.
Also, there are many companies selling MLM leads online. Distributors seeking new leads can purchase these in large quantities. However, not always are these contacts up-to-date or fit for work in MLM business. These companies often sell the same leads to a large number of customers. People on these lists are then constantly bombarded with phone calls and e-mails from MLM dealers trying to win them for their teams. Getting these people on board is then almost impossible.
The moment you have leads, you can start your business by offering opportunities to new people. The way you do it depends on your MLM business and the product you offer. Sometimes, it is sufficient to send an e-mail, sometimes you must make a phone call. Ideally, you arrange a personal meeting where you comprehensively explain the offer, preferably using computer or video presentations.
Many MLM companies hold regular presentations where dealers can invite their prospects to a personal meeting. The company prepares a professional presentation of their MLM business, their products or services, and compensation plan. There is usually some space for discussion, and at the end, visitors can sign up into the program. This method is particularly suitable for novice dealers who do not yet have much experience with presentation of their business. Getting people to come for a personal meeting can thus be much more effective.
The final step in building a multilevel marketing business is training newly registered dealers. This part is often overlooked and yet very important for successful growth of the team. Newcomers need to be properly trained to become familiar with the products they are going to sell. Your job is also to show them how to recruit new distributors into the team. You should meet with them regularly or communicate electronically so that your dealers are constantly informed about news and changes that may occur in the company.
At first, new members are often very enthusiastic, but soon they might lose motivation with the first couple of rejections and setbacks. The distributor who brought new members into the system must assign them individual tasks and guide them to set goals. It may take several months before a new distributor becomes completely independent and able to search for new leads, make presentations, and train his own people. A MLM business is based on team work. Previously registered and experienced distributors must pass on their skills to new members. Only then can the network grow, and with it sales volumes and profits.
A set of steps that lead to successful integration of a new member into the team is called network marketing duplication. The point is to provide freshly engaged dealers with all information and experience so that they are able to proceed just like their sponsor does in building his own business. This leads to duplication of a successful procedure and new members are then able to generate leads, register new distributors, and teach them to work independently.

Who Is Network Marketing Suitable for?

Working in MLM is different from regular employment, especially in terms of its unlimited income. Equally, however, there are no lowest limits for your income either. Therefore, it is advisable to leave your job not until your MLM business generates a stable, sufficiently high income. Many people choose MLM as an additional income that will help them to provide for old age when they no longer can go to work.
Network marketing requires a lot of learning and effort and may not be suitable for everyone. People who succeed in it have excellent sales skills and the ability to manage a team of people. Also required is enough motivation, positive thinking, and the ability to go on no matter what. Because network marketing is based on recruiting new people, people with strong charisma and great social skills have a great advantage. Those who choose freelance work from home so they would not meet with other people are likely to fail.
Some MLM distributors do not meet with a lot of people in the real world thanks to their large numbers of followers on social networks or blog. And they also have a great chance to succeed. Many MLM programs are now operating purely online, where new dealers can sign up directly on websites.

How to Choose a Network Marketing Company?

Those interested in MLM can choose from a huge variety of companies offering their products through network marketing. The basic criterion for the selection of a MLM company should be the product or service which the company sells. If you want to sell a product and make money in the long run, it is necessary to trust the product or service completely and never have doubts about its qualities and advantages. It’s good to have the product tested and have some great experience with it.
The most common products offered via MLM are cosmetics, food supplements, wellness products, financial products, energy, travel, or jewelry.
Before entering into any MLM program, it is always important to find out as much information about the company and its products as possible. This is especially true when you are required to provide an initial investment to enter the system. Still, there are fraudulent systems based on illegal schemes. Information about these unfair firms can usually be found on the Internet, in forums, and on specialized websites.
An important point when choosing a MLM company is selection of the right person who offers the business opportunity. Your future sponsor is the one who will have to take care of you, support you in the beginning, and teach you to build your own team. That person must have enough time – it is not advisable to register under distributors who recruit a large number of new people at once. Such sponsors simply cannot have time to manage their team properly.
People presenting their business opportunities usually tend to emphasize the advantages of their MLM system while omitting its negative characteristics. It is necessary to thoroughly understand the compensation plan, how it works, and whether there are any minimum payment limits.
A good MLM program offers excellent support to its distributors. It has a functional website, e-mail, and phone number where you can obtain the necessary information, if needed. Larger companies also have their offices in major cities. A quality MLM company should have trained personnel capable of quickly and properly helping you with anything you need.

Network Marketing – Yes or No?

Network marketing is undoubtedly a very interesting business. With minimal cost, you can build your own distribution network, generating high revenues.
When choosing your MLM company, you should carefully consider all aspects involved and find out whether that particular system does not operate on the edge of the law. It is particularly useful to avoid people who offer you fabulous earnings quickly and without effort, for which they require only “a small initial investment”. Well-established MLM companies have their own physical locations, customer service, and updated websites.
Although multi-level marketing is not exactly for everyone, most people can at least obtain a stable and secure additional income for their future. The best dealers build an above-average income and eventually financial independence. Everybody can find an MLM company that will not require undue financial and time demands. Legitimate MLM companies offer a genuine business opportunity for enterprising people who want to increase their income and reduce dependence on their everyday job.

How to Choose a Network Marketing Company

How to Choose a Network Marketing Company

MLM Company

Choosing a MLM company is the most important step in entering the world of network marketing. Everyone has different needs and expectations, and so you must carefully choose what kind of MLM product you want to sell and what kind of MLM company will pay you for it. A poorly chosen company can result in loss of money, time, and even confidence in network marketing. Conversely, when entering a good and proven system, one can take full advantage of business opportunities it offers. Give choosing your MLM company enough time, it will pay off.
Nowadays, there is a huge number of companies operating on the principle of network marketing. Many are already established and proven, while many other try to pretend they have been here for decades even though they had been established a few weeks ago. It is always necessary to carefully examine the MLM company, its products, and the way it treats its distributors. If you want be successful in MLM, you need the right company.
It is likely you get MLM business offers very often. Whether from family members, work colleagues, or classmates at school, always first get as much information as possible about the offer. The number of companies and products and services they offer is enormous, and you must choose the one that suits you best. If you enter a MLM program just because the offer comes from a close friend, you can lose plenty of time and – in the worst case – money.
Still, choosing a solid MLM company that has many positive reviews and plenty of satisfied distributors does not automatically mean that you will succeed. Others’ success does not guarantee your success.
To build a successful business will take a lot of work, high commitment, patience, and positive attitude. Network marketing is about selling products and recruiting new distributors, and that’s something no system will do for you. An appropriately chosen MLM company will give you a tool with which you will be able to effectively build your own team of motivated people, a circle of satisfied and returning customers, and ultimately fair and sufficiently high financial rewards for your efforts. It will be up you to use that tool the best you can. So how to choose a network marketing company?

Your Expectations and Goals

Working in network marketing is suitable for a wide range of people. Some people use it to ensure a stable additional extra income, others aim to create a huge business with astronomical profits. Before you start thinking about entering into an MLM company, think first about your expectations. What can you give MLM and what do you expect to get in return?
Whoever has a permanent employment and has no other income should not enter an MLM program that will be a full-time job. Some companies have their compensation plan set up so that without constant work and recruitment of people your income gets significantly reduced. Such programs are suitable for those who can afford to invest all their time into the program.
On the other hand, if you have to go to work, select an MLM business that will allow you to work in your spare time without having to meet strict monthly sales volumes. In that case, you can work your MLM project only when you have time to gradually build extra income. If so, you cannot expect to get rich quick in a few months. The amount of time invested is proportional to how fast you start earning real money in network marketing. If your expectations are realistic given your options, try to avoid disappointment and rapid loss of motivation when your MLM business does not expand as quickly as expected.
Never leave your regular job just based on promises of someone who wants you to join an MLM program. Results may not occur nearly as fast as you were told or as they did with others. This strategy will help you prevent problems that come along with failure.
When planning your business, think also about the other things in your life – family, friends, hobbies. MLM is just like any other work. If you give it too much time, you can end up losing more important things than the opportunity to earn good money.
The main benefits of network marketing are mainly financial independence and the freedom that it brings. And that’s something most people want to get when entering MLM. The ideal way is to enter MLM, work in it along with a regular job, and when you feel you earn enough money from MLM, leave the job and start working in MLM full time. That’s the way to achieve truly great results.

What You Want To Sell

To achieve success in MLM, you must believe in the product you sell. Product selection is the first step in choosing your MLM company. The product forms the basis for honest network marketing. And if you are not totally convinced about its qualities and benefits, you’ll hardly be able to talk others into buying it. Also, it is not likely you want to sell low-quality overpriced stuff to your friends, family, or business partners. Your reputation would suffer quickly, and you would end up with zero sales and possibly damaged relationships with your loved ones.
You need to build a positive relationship with your MLM product or service. You should be familiar with the given field, understand it, and preferably make it your hobby. If you act as an expert on the issue, it will be much easier to sell the product. People will seek you themselves, on the web and social networks. As a recognized expert, it will be easier to get recommendations from satisfied customers and thus new leads.
The nature of the product divides many MLM companies into men and women categories. Although there is naturally no rule that would allow distribution of products to only one sex. More often, however, you will come across women sellers of cosmetics and vice versa men sellers of gym supplements. In practice, it does not matter if you honour this rule at all. The important thing is that you are interested in the field, because customers will know.
Do not choose MLM companies that sell products or services that leave you cold. To succeed in such business would then be very difficult. Better pick a MLM product that is of high quality, convenient, and that you will use yourself. Convincing other people about its qualities will then be much easier. When you talk about a product that you trust 100%, people will automatically have a positive and pleasant feeling about the deal.

Questions to Ask When Considering an MLM Company

If you get an offer to work in MLM, check out all the following points and make sure the offer is the right for you. Many people do not spend enough on evaluating individual offers, which can result in frustration and financial loss.

MLM Products

It is very important to evaluate the product that the company sells. Successful sale of MLM products depends on many factors. Even if you like your products and you are interested in the field, you need to consider several aspects before you decide to enter the system and sell the product.
The most important factor is, of course, quality. Unfortunately, many products that are distributed through MLM are inferior. The pressure on minimizing production costs and the ability to offer higher commissions to distributors often come at the expense of product quality. Before you decide to sell a product, try it out for yourself or let your friends or family do it. Go online and try to find some customer reviews not written by MLM distributors.
The quality of the product or service will decide whether to customers will come back and thus whether you keep good sales. Moreover, customers can share their positive experience with the quality of MLM products with other people.
Conversely, nobody will come back to buy poor-quality products. A more likely scenario is that they will slander it.
Each MLM product should have all the necessary certificates. This is especially true for cosmetics and wellness products.
A crucial role in your business will always play the price. If your MLM product is unreasonably expensive given its quality, customers will look elsewhere.
If you want to sell an expensive product, the price must be in line with the quality. In that case, however, you need to understand that your target group will be narrowed down only to the wealthier customers. It is therefore preferable to sell medium-priced products of satisfactory quality. Such products can appeal to a wide range of consumers.
The final price of the product is also determined by whether the MLM company produces its own product. Companies with their own manufacturing facility are usually able to offer a cheaper product of the same quality than companies who have their products produced by an external company. Own production also guarantees greater stability and control over the company’s own products.
If you are planning a long-term successful business, you should have a product that is somehow unique and hard to substitute. For instance, if your MLM company owns patents or unique know-how, you have a guarantee that the same product will not be sold elsewhere in the foreseeable future. You would not want to start with network marketing only to stumble upon your product being sold in supermarkets for half the price.
MLM products must never be such that they are bought only by people who want to engage in the distribution network and capitalize on network marketing. In that case, you will never get end customers. In addition, such an MLM program borders on illegality because the only way to generate commissions is to register new sellers who buy the product. Primarily, the product must be attractive to ordinary people outside the distribution network.
Another aspect you should take into account when evaluating MLM products is whether it is consumable goods or not. If you offer products that everyone normally buys only once in a lifetime, you will need to keep looking for new customers and recruit new distributors. You had better avoid such MLM programs because creating a passive income here would be extremely difficult.
On the contrary, sustainable high sales volumes can be achieved by products such as cosmetics, food supplements, or certain financial services. This, however, obviously only applies if they are of high quality. Selling quality products that your customers keep consuming and ordering is the right way to create passive income from network marketing.

How Long the MLM Company Operates on the Market

When entering MLM, it likely you will aim to build a stable passive income. That is the most interesting thing MLM offers. If you are to keep your income, your company needs to stay around. Unfortunately, the reality is such that the vast majority of new MLM companies will wind up within the first few years (some sources say the number is even 90% of MLM companies to close their business during three years).
If you are considering entry into a MLM company, you should first find out how long it has been on the market. Do not be tempted by claims of a unique opportunity when entering a completely new MLM company. This is not to say such new company can’t be a good opportunity too, but you must be extremely careful in that case. Such companies may not last long, and if entering the MLM business cost you a considerable financial investment, you can end up with a severe loss.
When recruiting new members, distributors like to highlight the benefits. They say the market is still unsaturated and that distributors are few and with limitless future profits. In a year, it will not be so profitable, they say. That would, in fact, mean that the company has no future if it would not be advantageous to enter the distribution network any time later. How then will you look for new people to your team?
Entering a newly established MLM company is bit of a gamble. Sometimes you really can get rich, but mostly you will close the business before earning any real money. The money and time that you put into building your business will be lost forever.
If you don’t like to gamble, do not enter into these young companies. Rather pick an MLM company that has already had several years of successful operation. There are usually many reviews about such companies you can find online. The fact that a company has been selling its products through network marketing for the last five years itself indicates that its products and their quality and price are indeed competitive.
Still, if somebody offers you to enter an MLM program that has been in business for many years, it does not automatically mean that it is the best choice. But at least there is smaller chance the company will go bankrupt before you even get settled in the new business and make some money.
Some MLM companies have been operating for decades. They have tested products at reasonable prices, their compensation plan is well set up, and nothing prevents them from staying around for another decade. One reason why you should not enter such companies is that such companies must have already built their distribution network and so there should not be much opportunity for other dealers. It is true that in these programs distributors may get rejected because their potential customer already purchases the product from someone else. However, complete saturation of a market never takes place. New generations of economically active consumers keep growing, and they always present a new target group.
Try to find out who owns your MLM company, its history, and if the same people have not previously bankrupted other MLM projects. Make sure that the company does not drown in debts and has cash reserves for the payment of commissions and the growth of the business.
Selecting tested MLM companies minimizes the risks associated with network marketing. A long-established company usually provides its distributors with quality products and suitable conditions for the development of their businesses.

Where the Company Operates

Not all MLM companies offer its products globally. Some companies operate only in selected markets. You should check where it is possible to offer the product and where the company distributors can come from.
Some companies that use network marketing, for example, only work in the United States. In that case, it is not possible to bring a new distributor, for example, from Europe.
For those who want to start a big business, it is important to check on what markets the MLM company operates or where it plans to expand in the future.
Larger companies usually have branches in every country in which they operate. It’s always good to work for a company that has its own office in your country. In case of any problems, you can turn to it for help and assistance and resolve your issues directly with a representative who speaks your language. For example, if there is a problem in the payment of commissions or delivery of products, it is more efficient to deal with these matters through a local branch than a far-way headquarters.

Direct Selling Association Membership

Direct Selling Association (DSA) is a national trade association that brings together companies selling their products through network marketing. Its members include more than 200 companies operating in the USA. The organization aims to protect independent distributors, their customers, and companies distributing their products through direct selling. The association oversees compliance with a high level of ethics and customer support of the member firms.
DSA aims is to keep the good name of network marketing. It inspects companies, their operation, compensation plans, and compliance with the principles of communication with customers.
MLM companies that are members of this organization are usually certified companies with a good history. Their distributors must comply with basic ethical rules when selling their products and even when recruiting new distributors. Membership in DSA minimizes the risk of being involved in a fraud scheme.
If you can choose, prefer MLM company which is a member of DSA. This will protect you against rapid loss of money, if your company turns out to be dishonest.
For the list of companies which are members of the Direct Selling Association, visit its official website. Each member is also given the type of products or services it sells, including important contacts and telephone numbers.

Compensation Plan

MLM compensation plans determine what commission you get for your sales and for the sales of your team. It’s a very important document. Never enter any MLM program without a complete understanding of its compensation plan.
Companies often advertise high commissions for sales as the total amount they pay into the distribution network. However, each distributor gets only a fraction of this money because the total commission needs to be divided throughout the entire structure. Sometimes, MLM companies even do not pay distributors the entire amount of commission because they failed to meet various sales targets.
Always ask the person who offers you the business opportunity to give you a detailed explanation of the compensation plan. You should learn how many new distributors can register directly under you in the network, from how many levels you get paid commissions, or how commissions are graded at different levels. Also, find out if the payment of commissions is conditional on achieving monthly sales volume of your own or of your entire team.
Setting of the compensation plan determines how quickly a new member starts earning money. Sometimes, it is necessary to build a fairly large team of people in order to create even a small income. This usually takes a long time and no one wants to wait for the first payment half a year after the beginning of this intensive work.
Your MLM company should have a compensation plan set up so that even novice distributors had the opportunity to earn money within the first one to two months of work so that at least they could cover their expenses associated with entering the program. If the plan is set up so that an interesting income can be reached only by distributors positioned high in the structure, you will soon get demotivate and so will every member you recruit. Most of them will soon leave the business and your business will get nowhere.
Sometimes a MLM compensation plan is set up to support end dealers, sometimes it favors previously registered distributors with a large team under them. When considering signing up for an MLM program, think about what your goal is. You should decide whether you want to sell products to end consumers or build a large team of distributors.
Unfortunately, it often happens that even distributor who work in MLM for a long time do not really know their own compensation plan. They don’t know exactly how commissions are calculated from different levels of the supply network, cannot explain the system of special bonuses and rewards, and cannot even tell you what the conditions for the payment of money are. You should avoid such sponsors because they you will not be able to help up with your business when that need comes.
When choosing your network marketing company, you will usually come across one of these compensation plans: unilevel, binary, stairstep breakaway, or matrix. Each has its advantages and disadvantages.
The unilevel compensation plan allows you to register an unlimited number of first-level distributors, but the number of levels from which commissions are paid is limited. Of all the MLM compensation plans, this is probably the least suited for individuals who plan to build a large sales network.
The binary plan, in turn, allows you to register directly under you only two distributors, other distributors must be placed deeper into the structure. To achieve maximum profit, sales volumes in individual branches need to be balanced.
Stairstep breakaway is a widespread compensation plan which is focused primarily on meeting sales volumes at specified time intervals. Here, distributors climb the career stairs depending on the performance of their team while gradually attaining higher commissions.
The matrix compensation plan has a fixed width of the structure and the number of levels from which commissions are paid. The matrix compensation plan has a popular feature called spill-over where distributors in your upline must put their new dealers into your team because they have reached the maximum allowable limits.
When choosing a MLM company, you must pay close attention to the compensation plan. If so, you might avoid possible disappointment in the future when you find out that the commission system works completely differently than you thought.

Initial Investment

The size of the initial investment is obviously an important factor when deciding about a business opportunity. But it’s not just about how much money you have to pull out of your pocket. The investment you have to make to be even able to participate in the program also determines how difficult it will be for you to register new distributors into your team. When starting a business, each of us is willing to give a different amount of investments. What may seem like a reasonable amount for some may not be acceptable for others.
Another problem is that if the network marketing company requires an unreasonable amount of purchases of the product to enter the program, it might be in violation of the laws of some countries. They prohibit the so-called front end loading, which is a practise of forcing distributors to create a large stock of products. These MLM schemes are based only on recruiting new resellers who themselves buy large numbers of products. Very often, distributors then have a problem with selling such amounts of goods.
Calculating the return on investment in MLM is very difficult. It is hard to guess how fast you manage to create some income. There are many variables that you have to put into the equation. How many regular buyers of your products you get, how often they will order goods, how many new distributors you register into your team, how they will operate and further expand the team.
You certainly cannot rely on promises of the person who tries to lure you in to an MLM company. Their objective is to involve you in the system, and not all distributors are exactly honest when doing so. Obviously, there is a difference when you are dealing with a family member or a complete stranger. Never base your calculations on the results of someone else, whether they are real or imagined.
Doing reasonable estimates allows you to approximately determine what income you can achieve, for example, after three months of doing business in MLM. Such calculation can also serve as your goal and motivation, but you cannot count on it or plan your future around it.
Doing MLM business is never risk-free. You will not have a stable income until you build a solid network of distributors who will generate regular commissions.
Sometimes, your investment in MLM may not return at all. And it’s not only about if your company winds up or even deceives its distributors. It may be that you simply fail to succeed. You may realize that this type of business is not for you, even though you had thought you could do it. People around you may react on your offers differently than you had originally anticipated. There are many reasons why you can fail in MLM.
Never invest too much money in your MLM business. The golden rule says, never invest more than you can afford to lose. Avoid business opportunities that require huge investments. Do not join the ranks of those who put their savings into a dubious scheme, left their jobs, and then ended up with no money and no income because they overestimated their abilities or were deceived.

Support and Training

A good MLM company should provide its distributors with their own training courses. If you want to be successful, you have to be well trained in the products that you sell and in the methods of recruiting new members for your team.
Not every sponsor can be a good coach. Even if the person who brought you into your MLM program is himself well-trained and understands the system, he may not be good at teaching. Therefore, when choosing a network marketing company, make sure that the company offers its own training courses.
When you begin to work in network marketing, your first goal should be to get as much knowledge about the product you sell as possible. You should also train sales and communication skills.
Perfect product knowledge is a condition for the successful acquisition of satisfied and loyal customers. You must be able to advise your customers with the choice and emphasize the benefits of your offer. Therefore, pay close attention to studying informational materials about products and to corporate training.
Network marketing requires a high level of salesmanship. If you do not have a natural talent, try to attend as many coaching courses as possible. Meetings with successful people who master these skills can also help you to move forward.
Your MLM company must offer you regular training courses where you learn about new products and current business and marketing strategies, and let you improve your selling skills.
When evaluating MLM companies, also observe what kind of support they provide to their distributors and end customers. Does the company have local branches? Is customer service in your language? How does the company handle complaints? Many reviews can usually be found on online discussion boards. If the company does not resolve problems properly, you will certainly read about it somewhere.

Choosing a Good Sponsor

Selecting the right sponsor is as important as the choice of the company itself. If you already know for which MLM company you want to work, you have to find a person who will register you into the program and who will cooperate with you.
Each networker prefers a different strategy for sales, reaching new people, and building a team, and your future sponsor should be in line with your ideas in this respect. Some prefer online methods when building the team, some use more traditional ways.
Your sponsor in network marketing should primarily be a leader. He should be able to pass on his experience, inspire his team members, provide them with knowledge, and assign tasks so that the business moves forward. The sponsor must have a positive attitude toward his job and be able to motivate his team. A good MLM sponsor is constantly actively building up the business. He follows current trends, devises new strategies, and works on his skills and education.
Do not start MLM business with someone who will not have enough time for you because he has a large number of distributors under him or because he is busy with a completely different activity. Especially in your early days you will often need his help.
In today’s world of network marketing, a key role is played by modern technologies and the internet. Your future sponsor should be adapted to this trend. Avoid people who completely reject online methods for building their business.

Finding the Right Company and the Right Sponsor

You have probably received many network marketing offers in your life. If, however, none was the right for you or you were not satisfied with the person who should have been your sponsor and mentor, you still can look around for other business opportunities.
Most MLM companies have established websites where you can learn about their products and offers for distributors. Social networks are full of discussion groups and MLM job offers. Try to get into groups that connect people working in MLM business in your area. You can meet interesting people and compare offers of various enterprises and companies.
If you want to meet MLM professionals from your country or from around the world, create an account at MLM Gateway. You will be able to reach people working in the field of network marketing that interests you. You can listen to their offers and choose the right partner to enter the world of network marketing.
Choosing the best MLM company may not be a simple task. Comparing various options and evaluating offers take time and patience. Entering MLM is a serious matter that often requires a financial investment, so do choose carefully.

What is Network Marketing

You can come across the concept of network marketing, often referred to as multi-level marketing (MLM), almost everywhere. You hear about it on the Internet or social networks, from your colleagues, classmates, or family members. So what is it about? What is so interesting on this business? Why do so people keep offering you to participate in this money-making system?
Many people have MLM associated with something illegal and deceptive. Indeed, there are fraudulent systems which in some respects resemble MLM. This sometimes leads to misinterpretation of this business, which is otherwise perfectly legal and based on common business practices. Honest network marketing has a lot to offer – great money, flexible working time, independence. However, this is not easy to achieve. Building a successful MLM business takes a lot of work, learning, and patience.

So what is MLM?

Network marketing is a business model in which the dealer is rewarded not only for the sales it makes but also for the sales of other dealers he has brought into the system. Therefore it is called multi-level marketing. Commissions are, in most cases, paid from multiple levels of distributors. In MLM, the commission system is called the compensation plan.
Network marketing is a method of direct sale, where the supplier company creates conditions for individual, independent entrepreneurship. Dealers, who are not employees of the supplier company, can mediate entry of other dealers into the supplier structure. This creates a system of independent distributors who are rewarded for sales of products and services they make themselves and for sales made by other dealers below them in the structure.
Companies that use network marketing to distribute their products tend to have significantly lower spending on conventional advertising because information about their portfolio is spread through a network of dealers. They mostly sell their products to people in their neighborhood, to family members, or colleagues. With the growing the number of dealers also grows brand awareness. Companies are using MLM to often reach audiences that would be otherwise hard to reach using traditional marketing methods.
One of the oldest companies that use network marketing for distribution is the American company Watcher’s, which has been in business since 1932. Since then, hundreds of companies from various fields, who sell their products or services through MLM, have sprung up. According to the Direct Selling Association (DSA), there are around 16 million people in the U.S. involved in direct selling, collectively generating an annual turnover of over USD 32 billion. This method of sale is, however, widespread around the world. Every day, the system welcomes thousands of new independent dealers.

MLM Criticism

Many people refer to network marketing as a fraud based on a pyramid or Ponzi scheme. There are many half-truths and myths about this kind of business. Such misleading information about MLM is widely found throughout the Internet, usually spread by poorly informed people or those who have failed to succeed in it.
The basic difference between an honest business and a fraudulent system is that through legal network marketing dealers sell real products and real services.
Many MLM systems require that new members provide an initial investment. It might be used to cover the cost of marketing materials, business cards, flyers, etc. Sometimes, the entry into the system is conditional on purchase of a certain quantity of products that the company distributes so that the new dealer becomes better acquainted with the range of products he is going to sell.
Fraudulent programs use this entry fee solely for the payment of commissions to previously registered members in the scheme. Such a system is based only on registration of new distributors and collection of entry fees without any or only minimum real sales. This initial investment is thus not used to purchase vitally necessary materials to support sales or product samples, but to enrich those higher in the multilevel marketing structure.
Collection of unreasonable entry fees has been repeatedly identified as illegal even by U.S. federal authorities. As a result, critics still refer to multi-level marketing as a form of legalized Ponzi scheme.
Honest MLM businesses are not based on mere registration of new distributors but on actual sales of actual products or services.
The primary source of income of every dealers working in a legitimate MLM company comes from commissions for sales to people who are not part of the distribution network. And this is what distinguishes a proper business model from dubious companies seeking new dealers only to collect entry fees.
The supplier company must set its reward system carefully so that its compensation plan does not cross the thin line between legal MLM programs and fraudulent systems in which the vast majority of rewards is paid for bringing new distributors who must purchase certain minimum quantities of its products.

How Does Network Marketing Work?

Doing business in network marketing has many advantages over a conventional job. MLM dealers determine their own objectives and tasks and they don’t have to listen to any boss. They are masters of their time, they can work from home, and they take time off whenever they want. This freedom, of course, comes at a price in the form of greater requirements on self-motivation. However, it is the freedom what attracts so many people to this kind of business.
The essential difference between regular job and network marketing is the money. As an independent businessman working for a company which distributes its products through network marketing, you have no guaranteed, fixed salary. If your business is not doing well or you are just starting out, your income may be very small. On the other hand, the MLM business offers almost unlimited earnings, if you’re successful. And that is something virtually no employment can offer.
The possibility of unlimited profit is based on the principle of the evaluation system of network marketing.
In direct sale, you sell certain goods or services of your supplier. In return, you are rewarded with commissions, which is directly proportional to the volume of goods sold. In MLM, however, you also get commissions from the sales of distributors that you bring to the company and from the sales of distributors they brought to the company. Modern MLM systems pay commissions from many levels of your downline, which is the structure of distributors registered under you. If your distribution network keeps adding new dealers, your income will keep constantly increasing without any limitation.
From this description it follows that network marketing does not involve only the sale itself, but also recruiting new candidates for this kind of business. Integrating new dealers and distributors is an essential part of building a passive income in MLM. Usually, many dealers try to sign up their friends, relatives, and colleagues. However, if you are to create an effective MLM business, after some time you will need to obtain a new source of other MLM contacts, called leads, you can reach with an offer. The majority of successful MLM dealers can continuously generate large amounts of MLM leads whom it can present their business.

MLM Compensation Plan

In MLM, the commission system is called the compensation plan. It is a detailed description of how the commissions generated in the distribution network are paid to all the members in the upline of the dealer who made the sale.
The compensation plan determines the amount of commission, conditions under which it is paid, dates for payment, and various bonuses and benefits. It is a comprehensive document describing the way dealers are rewarded and every new dealer must agree with it.
The compensation plan of any company significantly affects profits and return on investment of each member of their MLM program. When choosing a business opportunity, the most important part is to understand the compensation plan. A network marketing compensation plan can be very complicated, and it is up to each sponsor to properly explain it to his team.
Most dealers operating in MLM, in fact, do not sufficiently understand their own compensation plans. This leads to many misunderstandings and bad selection of MLM company itself. A misunderstood compensation plan may lead to a situation when the dealer fails to achieve its expectations.
There are several basic types of compensation plans. To understand the whole system of commissions, it is necessary to examine several parameters.
The commission the dealer receives for making a direct sale is almost never equal to the total commission which the company offers for its product and which it usually promotes when recruiting new distributors. In fact, the commission is divided into all levels of the network of distributors, and the dealer gets only its share. Its size depends on the configuration of the given compensation plan – whether it is focused more on the sale of products or rather on recruiting new distributors.
It might even happen that the company does not pay the entire amount of the commission. This is especially true for newer companies, where the depth of the distribution network is still too small and the commission may not be paid to all its levels. A considerable part of the commission is also tied to various volume and performance bonuses, which are, naturally, not achieved by all dealers. The amount that is included in the compensation plan but not paid to dealers for these reasons is called breakage.
The fact whether the system targets at front line recruits or at previously registered distributors is essential for the selection of the right MLM program. If you plan to devote more time to selling products, you should look for a company with a compensation plan that sufficiently rewards front-line dealers. On the contrary, if your plan is rather to look for new dealers to involve into the network, a plan with significant rewards for high-positioned distributors is exactly what you want.
When choosing a network marketing company, you should also consider how its compensation plan will be attractive for other potential dealers you will try to bring into the system. Programs with high rewards for front-end dealers will be interesting for people who will sell the products to a lot of people or use it for their own consumption. Ambitious and business-minded individuals will, in turn, be more interested in programs promising high commissions for members with a great network of distributors.

Unilevel Compensation Plan

The simplest compensation plan is called unilevel. In this system, you can register any number of other dealers directly under you, because the width of the level is unlimited. The number of levels from which you get paid varies by company, but is generally limited. For example, if the commission is paid up to the fifth level, you will not receive anything from sales made by registered distributors from that level down.
The more levels in the structure from which you get paid a commission, the smaller the share for each level because every dollar in commissions has to be split into more parts. Programs with a low depth of paying levels are rewarding faster and sooner. If the number of levels from which commission is paid is higher, building up a decent income takes longer but the total profit may become higher.
Network marketing distributors in these systems are trying to bring as many new people to the first level as possible to generate income from them. Because deeper levels may not generate any income at all, they strive to expand their structure mainly in width, which is not limited. As a result, new dealers often do not receive adequate support from their sponsor, who is busy recruiting and supporting large number of people.
In order to support the growth of the network, some companies use various strategies to motivate dealers to build their business teams. For example, they condition payments of commissions from deeper levels on achieving a certain monthly volume of sales made inside their own distribution network. Or the plan may be set up so that, for instance, the second level pays much higher commission than other levels. The distributor is then motivated to register new dealers under its own direct dealers, which helps them with starting their business.
The unilevel compensation plan is designed primarily for people who do not plan to build a large distribution network. These programs are mostly lacking interesting incentive bonuses and rewards and rather fit passive dealers who often use the product only for their own consumption and connect only family members or close friends.

Binary Compensation Plan

Another type of the network marketing compensation plan is called binary. It is a system in which the distributor can register only two other distributors directly under him. The MLM structure thus creates only two branches. If you bring in another dealer into the system, he must be placed in the downline of another distributor. This means that you bring new people into the team of those who registered after you.
This plan is attractive because each person in the program needs to bring only two new people to get into the reward system. If a new member has a strong upline – the structure of dealers registered before him – his network can grow without additional effort. However, this is also the biggest pitfall of the binary compensation plan. New dealers do not always have enough motivation to build their sales teams and do not bring new members into the system.
An important element of this plan is the necessity of balancing the performance of both branches. The size of the commission is, in fact, proportional to the performance of the weaker branch. If one of the two branches generates a large volume of sales and the other only very small, the total profits of the distributor are significantly reduced. This state often favors the MLM company because it keeps the commissions from the stronger branch (higher breakage). Sometimes, these commissions are at least partly converted into other bonuses which the distributor can achieve in the future.
Most binary systems allow the member to purchase multiple positions, so-called business centers. The first business center is always created after entering the MLM program with a binary compensation plan, when the member starts building its business (into two branches). If it is allowed, the dealer can purchase another center, which he can strategically place in his own downline. This usually takes an additional entrance fee, for which he can get more product samples. Each independent business center then generates its own commissions. Most often, it is permitted to acquire a maximum of three or seven business centers in a binary system, usually located right below each other.
A distributor who begins with three business centers places two of his centers into the two branches of the first center. This gives him four free branches right at the beginning, where he can place new distributors. Later, some MLM programs allow purchasing additional positions and place them somewhere in the downline, which will also support the distributors below whom the new business center is placed. Sometimes, these new positions are created automatically after generating a certain turnover of own sales.
A frequently mentioned advantage of this plan is the fact that, unlike in some other plans, commissions are paid from an infinite number of levels. Sales that occur deep within the distribution network are always counted in the volume of sales of your branches. In practice, however, this does not always generate any real commission because it must be distributed among the entire upline first.

Stairstep Breakaway Compenstaion Plan

The stairstep breakaway compensation plan is the most widely used plan by network marketing companies. The system generates really big money to a certain amount of distributors.
The basic characteristic of the system is the responsibility of each dealer for their own sales volume and the sales volume of their entire distribution network. The shape of the structure and the layout of individual distributors in the network is not so important.
The total sales volume of a distributor includes his own purchases, sales to his customers, and sales made throughout his distribution network.
As the volume of sales in the distribution network grows, the dealer gradually stairstep to higher rank position in the compensation plan and the amount of commission for sales in its downline grows. The amount of commission from each branch is different and is generally proportional to the difference between the rank at which the dealer is located and the rank achieved by distributors located in each branch of the structure.
The higher the rank the distributor reaches, the higher wholesale discounts on the products he sells he receives. This allows him to sell at lower prices and increase the sales.
At the moment any of the distributors registered by the dealer reaches the same or a higher rank position in the compensation plan, that distributor and his entire network breakaway from the dealer’s downline. This part of the network is then called generation breakaway. From these breakaway branches, the dealer usually receives a certain monthly commission. The more generation breakaways in the structure, the greater the residual income the dealer secures for himself.
In order to keep the commission coming from generation breakaways, the dealer must constantly meet the minimum monthly volumes of personal sales or total downline sales. As distributors gradually break away from the dealer’s network to create a generation breakaway, the volume of sales of its remaining network falls.
This compensation plan can offer big profits, but it is necessary to work it full-time. The need to constantly meet monthly volumes forces the dealer to constantly look for new distributors. Therefore, succeeding in a network marketing program based a stairstep breakaway compensation plan requires both great salesmanship and the ability to recruit new distributors. Without a steady supply of MLM leadsx, it is usually impossible to continually expand the team of sales people and meet sales volumes. Distributors who break away from the dealer’s network must be replaced with new ones in order to qualify for the payment of commissions.

Matrix Compensation Plan

Another very popular network marketing reward system in called matrix. This compensation plan has a limited width of the structure. Each distributor can register only a limited number of distributors into the first level of his team.
The popularity of the system stems from the possibility of spill-over. If the dealer reaches the maximum amount of distributors in the first level, all others must be placed into deeper levels. Thanks to this, the dealer supports its downline members and keeps them motivated even if they are unable to bring new dealers for some time.
Because the system does not allow dealers to have a large number of directly registered distributors below them, they can devote more time to training and support of their team members. The process of learning and collaboration within the network are thus more efficient than in unilevel or breakaway compensation plans, where you can have a team of dozens of directly registered members. If the width of the structure in the matrix plan is, for example, three, each member looks after and supports only three people, which is the perfect number for establishing close cooperation.
In the matrix compensation plan, the number of levels which generate commissions is also limited. A 3×9 plan, for example, enables you to have three distributors on the first level while commissions are paid up to level nine. This dimension of the matrix plan determines the maximum amount of people you can have in your team. If your MLM structure is full, all other distributors will be placed in positions from which you will get no commission. Some MLM companies offer a matrix compensation plan which allows to re-enter the network and expand your business by another matrix.
The way this plan works is quite easy to explain to a prospect. Dealers often like to emphasize the possibility of spill-over and promise newcomers an easy-to-build network through transfer of new distributors from upline into their own downline. You can also often encounter offers where the sponsor himself creates a distribution network for you. Theoretically, new members would have to do nothing while obtaining a passive income. The reality is, of course, quite different.
No one should rely on the fact that experienced upline dealers will give new dealers free distributors. People entering network marketing should always aim to create a business of their own.

What It Takes to Work in Network Marketing?

The process of building your own business generating an income from network marketing consists of several basic activities – generating leads, recruiting new members, and their training and management.
The first step in expanding you MLM business is gaining contacts to people whom you can offer a job opportunity in the MLM company. A constant source of new MLM leads is necessary for successful development of any MLM business. Dealers acquire these leads in many different ways. At the beginning, they usually try to contact people from their neighborhood, people they know. Unfortunately, this source gets quickly depleted and they must start looking elsewhere.
One of the ways to establish new ties is to keep a blog and be active on social networks. Writing interesting articles about work from home, network marketing, and related fields can get you a loyal circle of visitors interested in alternative earning opportunities. If you can make your visitors sign up for your newsletter, you can send them targeted business offers. By sharing your articles on social networks and participating in professional discussions you can reach an even larger audience.
Also, there are many companies selling MLM leads online. Distributors seeking new leads can purchase these in large quantities. However, not always are these contacts up-to-date or fit for work in MLM business. These companies often sell the same leads to a large number of customers. People on these lists are then constantly bombarded with phone calls and e-mails from MLM dealers trying to win them for their teams. Getting these people on board is then almost impossible.
The moment you have leads, you can start your business by offering opportunities to new people. The way you do it depends on your MLM business and the product you offer. Sometimes, it is sufficient to send an e-mail, sometimes you must make a phone call. Ideally, you arrange a personal meeting where you comprehensively explain the offer, preferably using computer or video presentations.
Many MLM companies hold regular presentations where dealers can invite their prospects to a personal meeting. The company prepares a professional presentation of their MLM business, their products or services, and compensation plan. There is usually some space for discussion, and at the end, visitors can sign up into the program. This method is particularly suitable for novice dealers who do not yet have much experience with presentation of their business. Getting people to come for a personal meeting can thus be much more effective.
The final step in building a multilevel marketing business is training newly registered dealers. This part is often overlooked and yet very important for successful growth of the team. Newcomers need to be properly trained to become familiar with the products they are going to sell. Your job is also to show them how to recruit new distributors into the team. You should meet with them regularly or communicate electronically so that your dealers are constantly informed about news and changes that may occur in the company.
At first, new members are often very enthusiastic, but soon they might lose motivation with the first couple of rejections and setbacks. The distributor who brought new members into the system must assign them individual tasks and guide them to set goals. It may take several months before a new distributor becomes completely independent and able to search for new leads, make presentations, and train his own people. A MLM business is based on team work. Previously registered and experienced distributors must pass on their skills to new members. Only then can the network grow, and with it sales volumes and profits.
A set of steps that lead to successful integration of a new member into the team is called network marketing duplication. The point is to provide freshly engaged dealers with all information and experience so that they are able to proceed just like their sponsor does in building his own business. This leads to duplication of a successful procedure and new members are then able to generate leads, register new distributors, and teach them to work independently.

Who Is Network Marketing Suitable for?

Working in MLM is different from regular employment, especially in terms of its unlimited income. Equally, however, there are no lowest limits for your income either. Therefore, it is advisable to leave your job not until your MLM business generates a stable, sufficiently high income. Many people choose MLM as an additional income that will help them to provide for old age when they no longer can go to work.
Network marketing requires a lot of learning and effort and may not be suitable for everyone. People who succeed in it have excellent sales skills and the ability to manage a team of people. Also required is enough motivation, positive thinking, and the ability to go on no matter what. Because network marketing is based on recruiting new people, people with strong charisma and great social skills have a great advantage. Those who choose freelance work from home so they would not meet with other people are likely to fail.
Some MLM distributors do not meet with a lot of people in the real world thanks to their large numbers of followers on social networks or blog. And they also have a great chance to succeed. Many MLM programs are now operating purely online, where new dealers can sign up directly on websites.

How to Choose a Network Marketing Company?

Those interested in MLM can choose from a huge variety of companies offering their products through network marketing. The basic criterion for the selection of a MLM company should be the product or service which the company sells. If you want to sell a product and make money in the long run, it is necessary to trust the product or service completely and never have doubts about its qualities and advantages. It’s good to have the product tested and have some great experience with it.
The most common products offered via MLM are cosmetics, food supplements, wellness products, financial products, energy, travel, or jewelry.
Before entering into any MLM program, it is always important to find out as much information about the company and its products as possible. This is especially true when you are required to provide an initial investment to enter the system. Still, there are fraudulent systems based on illegal schemes. Information about these unfair firms can usually be found on the Internet, in forums, and on specialized websites.
An important point when choosing a MLM company is selection of the right person who offers the business opportunity. Your future sponsor is the one who will have to take care of you, support you in the beginning, and teach you to build your own team. That person must have enough time – it is not advisable to register under distributors who recruit a large number of new people at once. Such sponsors simply cannot have time to manage their team properly.
People presenting their business opportunities usually tend to emphasize the advantages of their MLM system while omitting its negative characteristics. It is necessary to thoroughly understand the compensation plan, how it works, and whether there are any minimum payment limits.
A good MLM program offers excellent support to its distributors. It has a functional website, e-mail, and phone number where you can obtain the necessary information, if needed. Larger companies also have their offices in major cities. A quality MLM company should have trained personnel capable of quickly and properly helping you with anything you need.

Network Marketing – Yes or No?

Network marketing is undoubtedly a very interesting business. With minimal cost, you can build your own distribution network, generating high revenues.
When choosing your MLM company, you should carefully consider all aspects involved and find out whether that particular system does not operate on the edge of the law. It is particularly useful to avoid people who offer you fabulous earnings quickly and without effort, for which they require only “a small initial investment”. Well-established MLM companies have their own physical locations, customer service, and updated websites.
Although multi-level marketing is not exactly for everyone, most people can at least obtain a stable and secure additional income for their future. The best dealers build an above-average income and eventually financial independence. Everybody can find an MLM company that will not require undue financial and time demands. Legitimate MLM companies offer a genuine business opportunity for enterprising people who want to increase their income and reduce dependence on their everyday job.

How to Get Leads for Network Marketing

How to Get Leads for Network Marketing

Get Leads for Network Marketing

This is a question frequently asked by everyone who enters the world of MLM, reaches their friends and family members, and then realizes there is no one else to present their business to. A steady supply of quality MLM leads is absolutely necessaryfor building a successful MLM team. A growing network of partners means a growing income.

What you Need to Effectively Grow Your Business?

Above all, it is faith in the product or service that your company offers. You will never be able to offer your business convincingly unless your have 100% faith in its benefits and functioning. To be successful in MLM, your goal must be to help others, not sell products. You must believe that your product or service can improve the life of others – whether through better health, travel experience, entertainment, personal development, or financial savings. Only then can you succeed in the long run.
If you are not confident about what you are offering, you’d better look for another company and another product to promote through network marketing. MLM is an excellent way of building a stable passive income – but it all depends on the quality of your product. Ceaseless recruitment of new people and building the downline is useless unless your network generates purchases and money.
Another essential part of your growth is motivation. It is not easy being rejected several times a day only to get up the next day and start over. Everybody involved in network marketing has to learn to get rejected on a daily basis. It just part of the job. Without sufficient motivation, you MLM business will be over in no time.
You need to set goals and try to stick to them no matter what. But your goals is not the number of registered people in your program or the number of orders. Your goal should be to carry out the planned number of phone calls, meetings, and presentations. If you offer your business to others often enough, the number of new members of your team will grow. Another of your goals should be to improve the way you present your opportunity. Do not focus on immediate results – those will come in time. You need to stay motivated and work hard on reaching new people with your business opportunity.
A crucial condition for your success in network marketing is a constant supply of MLM leads. If you have no one to reach, you team will never grow. Network marketing leads are the living water for your business. In multi-level marketing, getting fresh MLM leads is the most important and also the hardest part. And it is exactly where many people stumble.
That you just cannot obtain new leads? It’s completely normal for new MLM newcomers. You have to find your own way to meet new people and offer them your business. And that way is different for each industry. Sometimes, it is more advantageous to meet people in person, sometimes just by telephone or via e-mail.
In short, there is a number of methods to get network marketing leads. The latest techniques mostly involve the Internet, social networks, discussion forums, and online databases. Making contact with someone new online requires skill and experience. Today, the Internet is overwhelmed by job offers and discussions about them. As a result, it’s not easy to get real contacts for persons interested in this kind of business. In these days, people do not pay attention to all those messages that are constantly flooding their inbox – there’s just too much of it. If you send an e-mail offering an easy work from home to a person who doesn’t know you, it will most likely end up in trash.
If you really want to effectively acquire valuable network marketing leads, you must build a kind of personal brand and become a recognized expert in the field. If people will perceive you as a professional in the given field, they will contact you themselves or follow you on social networks and you can effectively communicate to them information about your business opportunity. That is the ideal state, which not everybody manages to achieve.
Many people resort to easier ways to get MLM leads. Buying MLM leads is a fairly common way for networkers looking to expand their business. Getting hundreds of emails and phone numbers of people who – at best – somehow consented to be contacted regarding business offers might be an appealing option. The question remains is, what is the real values of such leads. The truth is that most of these lead are completely untargeted and can be only poorly converted. What’s more, purchasing leads is quite an expensive affair, especially for new trades who cannot even use them effectively.

How to Generate Leads in Network Marketing?

If you want to get highly targeted MLM leads, use MLM Gateway. This site offers an opportunity to contact people who already have experience with network marketing, and it is completely for free. It presents a very easy way to discuss your business with people who are interested in this type of business. MLM Gateway members show each other their business opportunities. They can send messages and in the case of mutual interest, arrange a personal meeting or a phone call.
Not everyone is doing well in MLM business. In fact, the vast majority of networkers fail to achieve the results they have imagined. As a result, it happens quite often that you expand your team by people who were previously engaged in another program. Some of them are even directly looking for new opportunities.
MLM Gateway is a powerful tool that allows you to contact people interested in MLM from all around the world. If your company allows it, you don’t have to limit yourself to your country only. With MLM Gateway, you can extend your business to other countries and continents.
Don’t spend money on dubiously acquired lead on paid sites. The basic functions on MLM Gateway are absolutely free. No entry or membership fees. What’s more, MLM Gateway follows a very strict privacy policy.

How to Properly Use MLM Gateway?

This site allows you to get free leads for home based business, establish new partnerships, and expand your network marketing business. There are several ways to use its services. Not every strategy will bring maximum benefit. People do not always want to read your offers. If you really understand what kind of people use MLM Gateway and what they expect from it, you will achieve the expected results very quickly.

Who Are MLM Gateway Members?

MLM Gateway members can be divided into several groups.
1) Active members seeking new people for their teams
These members usually do not seek new trading opportunities. Yet, if you manage to arrange a meeting with them or exchange information about your companies in any other way, you at least get a chance to capture their attention. If your business proposal is really good, it might be your partner decides to enter your program and operate in more MLM companies at once. And even if he rejects your offer now, new business contact can come in handy in the future. Show them your blog, if you write any, or ask them to add you to the social networks. That way, you can build a circle of people who will know about you, read your content, and you might potentially approach them with another offer later.
2) Previously registered members who are no longer active in MLM
MLM Gateway has a large number of registered members who, for some reason, have failed and are no longer active in network marketing. These people have experience with this kind of business, know how it works, and you can offer them a new opportunity. If you propose them a quality MLM program, you have a great chance to succeed and to get them on board. Multilevel marketing is a wonderful business, but not everyone succeeds in it at first. If you can propose a solid, better offer to those who had given up on MLM and give them adequate support, you can get new high-quality team members.
3) Members seeking new business opportunities
These people love looking for new sources of income and follow network marketing opportunities everywhere. Members from this group have usually a lot of experience and can tell a good and a bad deal. These people are interested only in really good offers. If you succeed in getting these MLM veterans into your team, they will a valuable asset to you.
Usually, you cannot tell the type of the member simply by looking at the list of MLM prospects. That you will find out only by communicating with them. Try to guess their intentions, requirements, and expectations and adjust your strategy accordingly.

To Whom Should I Send Partnership Request?

Choosing the right people to whom you send a request for partnership will greatly increase your efficiency and save you plenty of time. Sending untargeted offers to people who for various reasons cannot or do not want to join you will only slow you down. Stay focused on leads which have the highest chance of success.
In their profiles, each member may indicate what fields of network marketing they are or are not interested in. People who are currently active in any network marketing company usually indicate that given field in “Interested in” field. This will give you an idea of what kind of fields they have experience with. It does not mean that you cannot contact people from other fields as well. By showing each other the advantages of different fields, you can compare business opportunities in another areas of MLM. If any member engaged in a given network marketing program is not doing well, they can leave it and registed to a new program. Some people start to work in multiple programs at once.
On the other hand, it makes no sense to contact members with an offer of cooperation in a field they have indicated in their profile as “Not interested in”. Sending such requests is usually a complete waste of time.

How to Reach MLM Gateway Members?

The manner of addressing a potential partner through MLM Gateway decides whether they contact with you or you lose the chance to establish communication with them. Pay close attention to what you are sending to your prospect.
Ask the member to whom you send a request for partnership for the opportunity to present them your program and let them know you are interested in their own business, too. This way, you can arrange a personal meeting or an electronic conversation and persuade them about the benefits of your offer.
Never send the members a message which merely states you have a business opportunity for them. If you fail to ask them about their own offer, it is very likely you won’t hear from them again.

How to Follow Up on Initial Contact?

If you manage to start a conversation, try to agree on the next step as soon as possible. If possible, arrange a personal meeting where you can discuss business matters. Alternatively, agree on a phone call for a time when both of you will have enough time to talk.
If you decide to send only an e-mail, remember to get in touch after some time to build on previous communication. Try to continue the conversation, asking they have any questions or if they are interested in further consultation.

How to Evaluate Incoming Requests?

MLM Gateway is not just about sending out business offers. If you get a message from another member, read it carefully and try to get more information. Even though you are now sure you will pass on the offer, a new business relationship may come in handy when expanding your business in the future. Try to create a network of people engaged in MLM.Such contacts will be very valuable in the future.
The more people you know, the greater the number of potential business partners you may have. Even if you fail to get a new team member, at least ask them if you can add them to your mailing list. Try to offer them some interesting content from your website or blog. Ask them to follow you on social networks. It could draw attention of their friends, whom you wouldn’t be able to reach otherwise.

How to Get Even More MLM Leads?

As standard, MLM Gateway allows you to send one partnership request a day. If you want to grow your network faster, there are several options to get network marketing leads without waiting.
Share MLM Gateway with your team members. This way, you will help them to expand their business from which you will naturally benefit, too. Moreover, for each new member who registers based on your recommendation you get 10 credits as a reward. You can use the credits to reach more members.

MLM Network Building

Obtaining MLM leads and establishing communication is not the final step towards successful integration of a new team member. If you managed to arrange a personal meeting or Skype conversation, where you will present your business offer, you made the first and most important step to expand your business. But it’s not over yet! Now, you need to present your product, services, and the business opportunity itself. It would be shame to lose a new lead simply because you failed to prepare your presentation properly and that you weren’t able to answer all the questions they had.
If you don’t have enough experience or knowledge in the field in which you are trying to break through, ask your sponsor for advice or additional training.
If you get a new partner or distributor for your MLM program, remember that you must also introduce them into your business and environment. Tell them how you build your network. Recommend them to sign up with MLM Gateway to accelerate the growth of their and your own team. Your work does not end when your lead successfully signs up into your program. You must immediately give them some tasks and begin to work on their professional development. Otherwise, their enthusiasm will quickly vanish, and the whole process of integrating them into your team would be just a waste of time.
Building a network marketing business is a demanding discipline and requires many skills. However, the reward is a very interesting passive income and the so much desired financial independence. Whether is network marketing your main source of income or just pin money, we wish you good luck with your project. It won’t be easy, but it’s worth it.

 

What is MLM Gateway?

MLM Gateway connects those who are involved in network marketing, providing home-based business leads. By contacting other members and presenting them the home based business they work in, MLM Gateway users create effective lead generation. This results in a rapidly growing network of business leaders in the network marketing program structure. Since MLM Gateway members already have experience with network marketing, it’s far easier to establish a partnership with them.
We encourage you to recommend this website to your downline, so they also recruit new leaders. You then accelerate your network marketing business even faster! Use our simple form to invite your team when you log in.
What MLM Gateway is not?
MLM Gateway is not an ordinary database of e-mail addresses intended to spam other users with offers of MLM programs. Nor do we sell our members’ email addresses or phone numbers. Every member may choose to whom he gives his contact information.
What do I get if I sign up?
After successfully signing up, you gain access to the list of network marketing leads. You can choose whoever you want to contact and send them a partnership request. MLM Gateway has members all over the world so it doesn’t matter if you are looking for free network marketing leads from the United States, Australia, Germany or South Africa. You are in the right place.
How much does is cost to sign up with MLM Gateway?
Registration and use of MLM Gateway is free of charge. You needn‘t spend a single penny to start building MLM business with us.
How does MLM Gateway work?
Following successful registration, each member may send a request for partnership to another member. The request is sent by means of a simple form that reveals neither the recipient’s e-mail address nor telephone number. The recipient of the request controls whether they will contact the sender or not. Member privacy is assured.
Only one request may be sent to each member. If the recipient chooses not to respond, the same member cannot contact them again within 12 months.
To learn the best strategy for new leads, read how to get leads for network marketing using MLM Gateway.
Who has access to my data?
Your e-mail address and phone number remains concealed to other members. Your email address is shared only when you send a Partnership Request to other member or accept a Connection Invitation. You need not be afraid of receiving email messages or phone calls from unknown people.
I received a request for partnership, which breaches the rules for use. What should I do?

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