How to Decide Whether to Join an MLM Company?
The network marketing industry is continuing to grow. People are joining teams everyday and sharing the companies products with their networks.
But, is network marketing the right choice for everyone?
Many people begin their network marketing journey with little to no prior experience or training. People start their business hoping for a ‘get rich quick’ scheme, only to be filled with disappointment and resentment towards the MLM industry.
Here is an open and honest fact for you. Most network marketers will not make it big. A huge number of individuals begin their business without knowing what it takes to grow a successful business. Yes, your company provides you with tools, products and training. But, implementing and taking action on this comes from you.
Those who are successful, are earning 4, 5 even 6 figures a month through their network marketing business. They demonstrate that it is possible, but it takes consistency, determination and action to get there.
So how to know if network marketing is the right choice for you. Let’s take a look at the basics of what network marketing actually is.
What is Network Marketing?
Network marketing is similar to affiliate marketing. When you sign up to start a business with a network marketing company, you sell their products or services as their independent representative. You then earn a commission on each of those sales.
Essentially, it’s a business in a box without all the extra overheads or high initial start-up costs with traditional style business. The network marketing company has the products already developed, the training and marketing material for you to implement and use. Your responsibility as an independent consultant is to use and recommend the products in a genuine and honest manner. When people make a purchase, this is when you earn money.
A secondary way of growing your business within network marketing is by growing your team. For each person, you introduce to your network marketing company and they choose to sign up and begin their own business too, you earn a commission for this also. Then, when they begin to grow their team, essentially this is what is known as your downline. For every subsequent person introduced to the business, are included in your downline.
How Does Network Marketing Work?
Network marketing is based upon word of mouth recommendations. Generally, companies do not pay for advertising and miss out the middlemen when you compare their production system to those of products sold within high street shops.
Due to this method, companies rely on independent consultants becoming their walking and talking representatives. Network marketers are also customers. So they use the products or services themselves, then, through recommending these to others, increase the companies exposure.
It is also known as MLM aka multilevel marketing as it works in exactly that way, different levels within their business model. As mentioned above, the core way to grow your business is by selling the products or services offered by your network marketing company.
Where levels come in, relates to growing your team. Initially, when you first join, you are a part of someone else’s team, but you yourself are a team of one. When you introduce so many other business members and also make a certain number of sales, you can move up different levels within your companies compensation plan.
Each company has its own unique compensation plan. The great thing about MLM where it varies compared to the corporate role is that individuals who join your team are not limited in their earning potential depending upon which level you are at. Each team member is responsible for their own business growth. If you decided to not do much work, or share your products, you aren’t going to grow and expand your business, hence won’t move up a promotional level. Whereas, if the person you introduced to your business did put in consistent work, introduced more people to the business and made more sales in the process, they don’t have to stay the promotional level below you. They can move above your promotional level, reflecting on the work they have implemented and grown their business.
Related Post: 7 Benefits to Joining a Network Marketing Company
Network Marketing Companies
There are hundreds of MLM companies you can choose from. To make it easier, here’s a list of the top few sub-divided into categories:
The Millennial generation is taking health more seriously compared with its preceding generations. So, if you want to earn a side income while looking out for your health, here are a few genuine ones:
- Forever Living
- HerbaLife International
Related Post: Benefits of Working with Arbonne
If you are interested in fitness and active living, here are some brands you should be checking out:
- Beach Body
- Jeunesse Global
- Juice Plus
Travel is also a booming industry, thanks to travel influencers. Some travel Network Marketing companies worth investing into are:
- World Ventures
- Coastal Travel Package
- Pro Travel Plus
- GoodLife USA
- TVI Express
Fashion and clothing are also emerging in the NM industry. Here are a few brands fashion lovers can be a part of:
- Ruby Ribbon
- Matilda Jane Clothing
- Agnes and Dora
- W by Worth
- J. Hilburn
- Stella and Dot
- La Senorita Jolie
Choosing the Right Network Marketing Company for You
Your success in network marketing starts when you choose your company:
Try the Products
Always choose a company you can resonate with. Something you have used in the past and feel confident in recommending. Try out the products, to see if they are something you would recommend to others.
This way you will appear more genuine, and others would see that you use the products and the difference you have experienced in doing so, therefore more likely to share your excitement and try them for themselves.
Review the Company
Before selecting the company, do your research. Review their financial condition. Go for a stable and profitable company. It is a well-known fact that certain MLM companies have suddenly shut down or stopped business within certain countries. So it helps to do your research and see which companies appear secure, have been around longer.
Ensure to review their ethics policies as well. For example, if you were vegan, you would want to consider companies such as Tropic or Arbonne.
Review their Network Marketing Program
Ensure to review the company you are interested in’s compensation plan, training and support on offer and what materials they have in order to support your role in growing a successful business.
Usually, when you are considering joining a network marketing company, you will have been introduced to the opportunity by someone already working for them. Hence, you will have been exposed most probably to a presentation which includes some of the details regarding said company.
It is super important to review the materials for yourself rather than taking the word of a consultant. Consultants may not always have the most up to date information, they are only human and don’t remember everything accurately. You also have the unethical side of network marketing where some individual consultants will over-exaggerate particular details in order to encourage you to sign up with them there and then. Though this is rare, it is super important to ensure you are given the documents to review for yourself and go over the finer details.
Read the fine print carefully:
- Assess their compensation plan. How will you be making money? As discussed before, with network marketing, you will be making money through a) selling products and b) building your downline. If your company solely focuses on building a team, I’ll tell you that’s a red flag. It’s difficult to build your downline if the products don’t aspire. You should also be looking at the commission rate for the products you are selling. Do you have to complete a minimum order to get paid? Are there any bonuses for good performance?
- Look at the support and training provided. You probably have little or no experience when it comes to selling products. A great company and more importantly, an experienced leader should offer you training to give you a good start to the road to success. Good network marketing programs have training courses in place to help you through the journey. Different teams will also offer different training opportunities, both online and face to face. It is important to try and attend as many of these as possible, especially in the beginning. There are different ways you can grow your network marketing business. Don’t be afraid to try out each method and see which one works best for you.
How to Make Money with Network Marketing
When it comes to making money with network marketing, there are two ways: direct face-to-face selling and selling through social media. But before you choose one or both, build your basics:
Research Your Target Market
Who is going to buy from you? These are known as your prospects, including those who will buy products from you and those who will join your team.
Think of the ideal person who buys your product, known as your Avatar. How old are they? What are their interests? What are their behaviors? Where do they hang out? What’s a better way to reach them: online or offline? List down 5 offline places where you are likely to meet your target audience. Then consider these questions when choosing your social media channel to focus on:
- Where are you most likely to meet your dream client?
- Which platform are your competitors choosing?
- What kind of content will you be publishing?
- Where are you most comfortable with?
I only suggest you focus on one social media channel to begin with because they can become time consuming and also your target market may not be on every single channel. It is best to start with one and become comfortable using this platform before branding out.
Network marketing and sales gurus will always tell you to promote yourself, rather than the actual company you are promoting. Build your own brand.
Have you heard the saying ‘people buy from people’? It is true. People want to know about you, how the products have changed your life, what has the business done for you and your family. They are less interested in the companies backstory but are highly interested in finding out about you.
Building a brand can help you in two ways. One, it builds trust. People are more willing to trust a person, than a company. Second, if the company closes or you stop working for them, you don’t have to start from zero.
I highly recommend using the formula of Attraction Marketing when it comes to building your brand.
The idea of attraction marketing is to attract, rather than sell. You make yourself and the brand so appealing, your prospects come to you on their own.
Here’s how you use attraction marketing:
Here’s where your network marketing training material comes to play. If you are promoting a fitness brand, educate your consumers on the importance of fitness. Offer them tips, actionable plans, etc. In all this, don’t forget the product. Insert it in strategic points. Make it the star, but don’t overdo. A good suggestion is to keep to the 80/20 rule, 80% of the time, offering other content full of value to your audience, with 20% focused on the products or services you offer.
Do you have a friend who’s into network marketing, and all she ever talks about is her company? That’s not good marketing. It’s not working, because it isn’t authentic. It comes out as a fake, and no one is attracted to that. Be honest, be authentic. If you love a product, share why you love this product, what is your backstory, what did using that product do for you? Equally so, if there is a product you don’t rave about, that’s ok. It is absolutely normal to not like all 500 products your company offers and it is also ok to share this with your audience.
Meet as many people as you can. Get active, get social. Even on social media. Join groups. Check into those groups regularly. Because the more people you connect with, the more people you can reach and attract. This doesn’t mean become that dreaded Spammy Pammy and sending message requests to everyone in those groups! Be present within each group, answering questions, showing yourself as an authority within your brand. For example, if you offer fitness packages, support people asking questions about simple exercises or how to fit exercise into their day. The more you show up and help others with value, the more people see you as an authority and want to know more about what you have to offer. Build connections.
Generate Regular content
On social media, there are so many ways to educate and build awareness around your brand. You can write a blog, design infographics, create videos. Generate content regularly. Get into your prospect’s minds. Be the first person they think of when it comes to fitness, health, travel, etc.
This will take some time. When you consistently follow the above rules, you are slowly earning trust amongst your people. Keep building on that. But remember, always be honest. That’s the foundation of trust.
Remember, the aim of attraction marketing is to build a connection and engage with your audience. These will eventually translate into sales and building your downline.
Create Your Pitch
Your pitch is what you are going to say or show your prospects when you recruit or sell to them. Look at your training materials. Prepare beforehand. According to Daniel Pink, there are six kinds of pitches you should prepare:
The One-Word Pitch
What’s the one word that defines you and your brand. Give your company a personality. Now what’s the best word that defines it. Go for motivational, high-power words.
The Question Pitch
Ask yourself, what problem does your brand solve for your prospects? Create a question around that problem. That’s your question pitch.
The Rhyming Pitch
Rhyming sentences stay with you. They are easier to repeat. Think of the main concepts of your brand. Now find rhyming words for them. The internet can help you with that.
The subject-line Pitch
We are all spammed in our emails. There are times when the subject lines of these emails make us want to open them, even though we know they probably are click-bait. So what makes them stand out. It’s three things: a promise, something that builds curiosity, or something that’s ultra-specific. Write one sentence around one of these to drive attention.
The Pixar Pitch
You probably already know Pixar. The animation studio has been churning out one successful animated movie, after another. A former artist at Pixar claims that it starts with their six-sentence narrative. It goes something like this:
Once upon a time____________. Every day____________. One day____________. Because of that, ____________. Because of that,_____________. Until finally___________.
Use this template to create your pitch.
The Twitter Pitch
This is something like the elevator pitch. You try to convince your audience about your brand in less than 280 characters.
People don’t have time now. If your pitch is too lengthy, it will be cut out. Your dream client will scroll down, without getting to the main point, your call-to-action.
Create Your Lead Generation Page
A lead generation page is where you send all your prospectus to give more information about the brand. The idea is to free up your time. So whenever XYZ person says they are interested to know more about your brand, you send them to the page. This will most likely be your website.
Make that page convincing. Give them real-life examples. Connect with their emotional and logical side. Establish your credibility. Use your pitches here.
In the end, give them a call to action. This could be joining your team or selling the products.
In all your interactions on social media, send your prospectus to this page. If you write a blog post, include a call-to-action at the end of the post to this page. If you do a video, convince your viewers to check that page out.
With your lead generation list, build your active candidate list. Get their emails. Offer them a freebie in return to make the process faster.
You will be using these emails to reach your customers in a more personal way. Talk to them directly when a new product is launched, or a special offer is going on.
Promote on Social Media
Once you have your research, your pitch, and your landing page, the next step is to reach those people and start selling and recruiting.
Social media has made it infinitely easier for network marketers to connect with their target market. Almost everyone has a social media account, and your target market does too. Some ways to build your team on social media are:
- Build Relationships: Before you sell, connect. Build relationships because people are likely to buy from people they trust.
- Make Them Curious: Don’t mention your company every time you post. Build curiosity. Focus on branding yourself instead. Use the principles of attraction marketing mentioned above. Get them to ask about the company.
- Build A Community: Aim to build your own community. On Facebook, this could be your Facebook Group. Make it a community about helping your prospectus solve their problem through your brand.
Related Post: How to use Instagram for Your Network Marketing Business
While social media offers you a great potential for exposure for your NM brand, you shouldn’t be discounting face-to-face selling also. When I mention face-to-face selling, I don’t mean becoming a door-to-door salesperson. NO!
We meet hundreds of people, and anyone of these could be our prospects. Not everyone will be, but a few will definitely be. A few things to keep in mind when selling face-to-face:
- Build an emotional connection. Make connections about them. What problem are you solving for them?
- Use the principles of attraction marketing. They are still applicable here.
- Don’t mention the company first. Give your prospect the chance of asking that question.
- Bring them to back to your social. That’s the place where you can keep the connection alive. Get them to join your community. Direct them to your lead generation page.
How to Know if it is for me?
There have been a few times where just mentioning the word, network marketing or MLM bought a bad taste in people’s mouth. Network marketing has earned a bad rep among the majority, due to some of the approaches individuals use.
I’ll be honest. Network marketing isn’t for everyone. That’s mostly why Network Marketing is getting such a bad rep. People enter MLM with the wrong aspirations, end up getting disillusioned. So, before you start your Network Marketing business, you should know if it is for you:
Network Marketing is not a get-rich scheme
I’d say think of it as part-time work. It’s not going to replace your day job. At least not in the beginning.
You could be earning a six-figure income a few years down the line if you choose the right plan and give it your time and energy. So, if you are thinking of joining a big league, you should be looking at something different.
Earn Extra Income
If you have free time on your hands, investing your time with a network marketing opportunity could earn you extra income. For most people, it probably wouldn’t earn you money like a full-time job. That’s because it’s not a full-time job. You only have to put in a few hours every day to start earning. The importance here is not the amount of time put in each week, but the consistent amount of time put in.
Improve Life Quality
Most NM plans contribute positively to the quality of your life. For instance, if you choose to go with a fitness MLM, you will observe a healthy change in your body. A fitter, healthier you.
Don’t get involved just for the money. Start a network marketing business for yourself. When people see the change in you, it will draw their attention, they will follow your journey and may lead to them asking questions.
Receive free training
You get loads of free training to improve your marketing skills. Learn from that training. Even if you switch to something else, the trainings will help you out immensely. You learn new skills along the path.
Build Your Social Circle
As a WAHM, there were times where talking to complete strangers would sometimes make my day. When you start network marketing, you attend both online and offline social events. You meet new people, make new friends.
Get Cool Discounts
I always suggest choosing a network marketing brand that you currently use. When you sign up to their program, you get access to discounts on those products.
Network Marketers sometimes feel like they are constantly facing objections, and rejections, from their prospects. Some objections most people have towards NM are:
‘I don’t have the time’
Network marketing doesn’t require you to put in long hours. The best part of network marketing is that you choose the hours. Decide how many hours you can commit to it, and give your best during those hours.
‘I don’t want to invest my money’
Any business requires an initial investment. Think of network marketing as a small startup. Plus, you can earn back that money by getting cool products and training. And you’d be making more through sales, commissions, bonuses and building your downline.
‘It’s a pyramid scheme’
MLM is not a pyramid scheme. Pyramid schemes are illegal, really. When choosing your company, do your research. Check how you are required to make money. If it is mainly by recruiting more people into your team, with high startup costs, then that’s a red flag. Also, check if the products are marked much higher than their competitors in the market. It goes to show that the company doesn’t really plan on selling its products.
‘I don’t know anyone’
It’s not about knowing people, but the people you will be meeting through network marketing. The training you will receive will help you build an active candidate list. This is a growing list of people who you are connecting with and are potential clients and business partners.
‘I’m not a salesperson’
Author Daniel Pink, in his book, To Sell is Human, says, ‘We are all in sales’. In many ways, we sell every day. We are always persuading, convincing and negotiating with the people in our lives. Even our children. Isn’t that what sales is?
When most people think of sales, we think of the sleazy, pushing and slick salesperson. That’s an outdated picture. The concept of sales is evolving and you could be a part of that change. You just have to be willing to learn and be yourself.
At the end of the day, the network marketing industry is booming.
It is fast growing with 1000s of consultants across the world. Yes, most consultants don’t earn 4,5,6 figure incomes each month. But, does every business ever started to become this successful? No, because not everyone is willing to put in the time, energy, training, and consistent effort it takes to grow a successful business.
But, if you are interested in starting a business, you don’t want to worry about creating your own products to sell and you want to join a positive and uplifting community of other entrepreneurs – then network marketing could be for you.
For me, I have made some incredible friends. I have joined a positive community that has made me open my outlook on life. Starting my own network marketing business has led me to find other opportunities I didn’t know were out there, such as this blog or being able to teach from home.
Network marketing isn’t everyone’s cup of tea. But, if you go in with an open mind, who knows where your business will be in 2 or 3 years time.
If you have any questions, please feel free to reach me in the comments below. I’d love to help you make your NM journey a successful one.