How to Network Market

Three Parts:Starting Your Network Marketing BusinessRecruiting Team Members and Selling ProductShaping Your Network Culture

Network marketing, also known as multilevel marketing, is an increasingly popular way to generate both passive and active income. This is because network marketing is a very flexible and dynamic business. Not to be confused with pyramid schemes (in which profit is often made from fees paid by people recruited into the network), network marketing allows you to make money by selling a product/service yourself or when someone in your network sells a product or service. But despite the fact that network marketing is such a popular and potentially promising business, there are a number of things you’ll have to do to be successful, including navigating the difficult world of personal sales. Ultimately, though, with some work and information you can run a successful network marketing business of your own.

Part 1
Starting Your Network Marketing Business

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    Learn about network marketing. Network marketing is a sales business in which an individual sells products and recruits others to join their network to sell products. As a result, it is important to understand how people make money in network marketing. In most cases, the people you recruit will also recruit people to becomes salespeople. The various levels in your sales network (the people you recruit and the the people they then recruit and so on) are known as your "downline."
    • Some network marketing companies deal with a wide variety of products and services, while others focus on a single product or service such as deregulated utilities.
    • Rather than spend money on traditional marketing and sales channels, MLM companies utilize their customers to sell their products.
    • When you make a sale, you receive a percentage of the sales price, as does the person who recruited you.
    • When someone you've recruited makes a sale, both of you receive a commission.
    • When someone you have recruited recruits another sales person who makes a sale, all three of you make a commission
    • The more people below you, whether directly recruited by you or by someone beneath you, the more money you make.
    • Profit is made by sales of product, not by fees paid by people recruited into the network (as with pyramid schemes). However, anyone interested in network marketing should know that they have been accused of being pyramid schemes.[1]
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    Choose a marketing campaign or company. Perhaps the first step establishing a successful network marketing business is to choose the right opportunity. This is not really the easiest thing to do since there are a plethora of different opportunities you can choose from. However, make sure to consider:
    • The product. What type of product are you marketing? Does it have wide appeal and is it in demand?
    • The product or service is the most critical element of success. Ideally, the product or service is constantly used so demand is continuous with repeat customers. It should be competitively priced, typically below similar products or services since the marketing costs are generally lower.
    • The company. What company are you going with? Do they have good branding and good visibility?
    • Financial stability is essential. Check their financials if they are publicly traded. In addition, check with the State Licensing Board and Better Business Bureau to determine their legal standing and reputation.
    • The pay. How will you get paid? What is the percentage of a sale you get paid? What is the percentage you get paid for sales downstream in your network. Be wary of campaigns where profit is generated from fees paid by recruits -- these are pyramid schemes.[2]
    • Volume of sales is more important than commission as an indication of customer acceptance and repeat business. A high commission usually indicates that sales may be difficult.
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    Learn from mentors. After you sign up with a company and get into network marketing, you’ll need to find yourself a mentor to learn from. Rely on the person who recruited you. There is a good chance that you were recruited by someone else into a certain network marketing campaign. This person can serve as your mentor. They will be especially motivated since they will receive a portion of your sales.
    • Find a mentor in the company you are signing up with. Many network marketing companies will assign you a mentor when you sign up. This person will serve as a mentor and point of contact. They will and should answer any questions you have.
    • Find a friend who is already in the business. If you know someone who is already in network marketing, contact them and ask if they will be willing to act as a mentor. Make sure they know you won’t be a big drain on their time. Simply see if they’ll be willing to answer some emails, some phone calls, or even go out to lunch every once and a while.[3]
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    Keep good financial records. Keeping records is critical to succeeding in network marketing. This is important, as just because you don’t have a brick and mortar store front, doesn’t mean you don’t have to function as if you don’t.
    • Keep records of every expense your business incurs.
    • Keep records of every dollar your business earns.
    • Consider getting an accountant for your business.[4]
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    Keep other sources of income. Network marketing is a business that takes time to build. As a result of this, you won’t want to suspend all of your other sources of income when you jump into it. If you have a full-time day job, keep it. If you have a part-time night job, keep it. Fill in all available spaces with your network marketing job.
    • As your network marketing income grows, reduce other obligations.
    • Always make sure you have enough money coming in to meet your obligations. You definitely won’t succeed at network marketing if the bank is about to take your home or you’re about to be evicted from your rental.
    • View your network marketing job as a small business that you are going to grow overtime into a full-time endeavor.[5]

Part 2
Recruiting Team Members and Selling Product

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    Advertise your products or services. Once you jump into the business, you’ll want to begin by advertising your sales campaign. This will be perhaps the most important thing you initially do to generate income. Fortunately, with modern technology, there are a number of ways to do this.
    • Use social media. Advertise your campaign over social media. You can do this through websites like Facebook, LinkedIn, Twitter, and more.
    • Print flyers. Depending on what good or service you are marketing, have some flyers printed up and distribute them in your community.
    • Use word of mouth. Tell your friends and family about your new business. With a little luck, they’ll tell other people and you’ll have some business relatively quickly.[6]
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    Sell your product. While you can make decent passive income by the sales generated by the people in your network, if you really want to succeed in network marketing, you’ll have to actually sell your product. As a result you need to make sure you get out, hit the pavement, and sell your product.
    • Success comes from expanding beyond friends and family. Be cautious, however, as many people, even friends, will resent a sales pitch or recruiting effort.
    • Devote a large portion of your work week to meeting new people to sell product to. Depending on your product, you can go door-to-door.
    • Set up a website to sell your product.
    • Hire a lead generating service. This could work online or in person.[7]
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    Recruit downline salespeople. One of the most important aspects of network marketing is the process of recruiting marketers/salespeople who will work below you. As a result, you need to get out there and recruit salespeople to work under you in your network. Make sure to:
    • Have business cards printed and hand them out to people.
    • Talk to friends about your new business. Tell friends what you’re doing and let them know that you’d be happy for them to work with you. However, don’t be pushy and don’t try to sell them on it. Just let them know. If they’re interested, they’ll ask you questions.
    • Post an ad online or in a local newspaper. Advertise and let people know you are looking for salespeople to join your team.[8]

Part 3
Shaping Your Network Culture

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    Maintain a positive perspective and be truthful. Stay positive and be truthful about your success or lack of success. If you’re a superior sales person and recruiter, you will undoubtedly succeed. When your success is apparent, you’ll have an easier time recruiting people. Make sure to never:
    • Lie or deceive people about income prospects when recruiting someone into your network.
    • Lie or deceive people about the product or service you sell.
    • Gossip about your bad day or experience to your team.
    • Do anyone favors you wouldn't do for your team.[9]
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    Set boundaries for your team. Make sure to set boundaries for your team right from the beginning. It is imperative to your business that such boundaries are set in place even before anyone joins your team. It's equally important to have this mind set and rules for yourself before you join into any "team" business.
    • Set boundaries about where members of your team will recruit new salespeople from. You don’t want one member of your team recruiting the uncle of another team member. Make it clear that family are off limits.
    • Set boundaries about where members of your team will sell product. Talk to your team members and try to figure out where everyone will sell their product. If people are working online, this should be no problem. However, if your team goes door-to-door, you don’t want one member selling product in another team member’s neighborhood.
    • Set boundaries about what information members of your team will divulge to new recruits, customers, or those outside your network. You don’t want a new recruit telling your competition about internal sales or other important information.[10]
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    Avoid bringing in personal issues. In order to help create a positive network culture, make sure not to bring any personal issues into your business. Personal issues can ruin your network and undermine your business. Make sure to avoid.
    • Recruiting anyone who you have outstanding personality conflicts with.
    • Talking about religion or politics
    • Recruiting family members or love interests.[11]
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    Energize your team. Perhaps the most important part of network marketing is to energize your team and keep everyone motivated. Keeping everyone energized and motivated will likely increase sales and morale. To do this, consider:
    • Creating incentive systems like "give backs" of your portion of a subordinate's sale when they meet a certain sales number.
    • Make regular motivational calls to those below you. Check in with your subordinates every week or two and let them know they are doing a great job and making progress. If they have issues, talk them through it and keep them motivated.
    • If your system allows it, promise bonuses or promotions to your best salespeople.

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