Tag Archives: Mlm Marketing

Do People Really Make Money in Network Marketing / MLM?

 

The only people making money in MLM / Network Marketing are the ones who know how to market & sell.

The majority of network marketers buy product every month, go on conference calls and attend company conventions, but they are not making any money.  They don’t PRODUCE!

WHY?  These people want to be part of something.  Part of a community.  The problem with most MLM communities is that the majority of the “heavy hitters” will give you strategies but will never tell you everything you need to know to be successful.  Face it, in most companies, it’s better for them if you produce, but don’t hit it out of the park.

Then you have the  people who will tell you “It’s not selling, it’s just sharing products with others.”  and “It’s like recommending a good movie, book or restaurant.”

HELLO?  If that’s the case, why do people drop out of MLM but don’t stop recommending good movies, books or restaurants?

Are you ready to be part of a community where you actually learn HOW to market & sell your products and/or business PLUS make money?  If so, click here and check it out.

 

Make this your BEST week ever!

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What is MLM or Network Marketing?

I had not intended to actually begin my business until December 1, 2012.  I had a few things that I needed to finish up during the month of November before I could concentrate fully on getting my new business up and running.

That plan, however, was derailed, but it was derailed in a good way.  I have had quite a few people already ask if they could join my new business.

THIS  is what I teach people.  People join people they know, like and trust.  I’ve positioned myself over the years in front of these people.  They didn’t even know yet what company I was joining, but said “I want to be on your team”.   That is powerful.  My new business is an MLM (Network Marketing) company.

What is MLM or Network Marketing?

Let me first explain what happened to me in 1985 shortly after I graduated high school.  I was approached by a gentleman who was involved in a company called Amway.  He explained the business to me by drawing a bunch of circles on a white board and talking about leveraging the time and efforts of others.  He explained a business where you not only get paid on your efforts but on the efforts of everyone you bring in as a business partner and everyone they partner with and so forth.   I LOVED that concept.  I’m always looking for ways to work smarter, not harder.

However, I was young and didn’t really understand what I had.  I tried this whole thing called Network Marketing or MLM (Multi Level Marketing) and it just didn’t work so I quit.  I joined a few different companies over the years, but really didn’t know what I was doing or how to do it.  About 12 years ago I decided to buckle down and really learn this business.  I got involved with a home party company called Petra Fashions.   I would go to people’s homes and do parties for them and sell lingerie.  I loved it!!  I had fun, I made money and it was great.  After a few years, my friends and their friends and everyone I talked to had more lingerie than they knew what to do with and the business just kind of fizzled out.

That’s when I realized if I was going to do this and have it last, I needed products that people would want to purchase over and over again.  Consumable products.  Over the past 10 years, I joined a couple different companies and learned a LOT through trial and error.  Most was error, but that taught me what doesn’t work.  In 2005 I joined a company and took all that I learned over the years and implemented some strategies (still learning more as time went by) and built a good sized business.  I was having fun and making money and it was the best of both worlds.  During that time, I was also teaching classes for people who were building businesses just like me.

In 2010, I decided that teaching was what I felt led to do.  I also, however, felt that being involved in my own MLM company while coaching others would be a conflict of interest.  I didn’t want my clients to feel uncomfortable thinking I may want them to join my business.  So, I left my network marketing company and began my coaching business.  Over the past two years I realized something.  I was teaching others to be successful in THEIR businesses and they were making more money than I was doing coaching.

So…after some soul searching and talking to others, I decided to get back into MLM because I was leaving a lot of money on the table.

Here’s the best part about working an MLM company…I get paid a commission on anything that people purchase from my site.  Just like any other sales person in the world.  The difference is that I get a larger commission than most salespeople do.  Most times, a salesperson sells a product and they get a very low percentage of the cost of the product.  This is because in order to bring the product to market, the product generally goes through channels.  The more people and advertising involved in bringing a  product to the end consumer, the less commission can be paid to the salesperson.  Even large stores like Walmart or Target or Wegmans, etc… have costs involved with bringing their products to the end consumer.  This means either the price goes up or the store gets less money.   With MLM, the product generally goes direct from the manufacturer to the consumer.  The person who introduces the consumer to the product gets a bigger portion of the pie because there are no other channels involved.  No advertising.  It’s all word of mouth by the independent representative (rep) to the consumer.

There is a popular program out there by Direct TV.  If a Direct TV customer recommends the company to a friend and the friend starts their own service, Direct TV gives a $10 credit for 10 months to the person who referred the new customer.  BUT…in this case, they are capped at the amount of their bill.   If their bill is $50/mo and they refer 10 friends, they only get a $50 credit for 10 months.  After the 10 months, they are done.  But…with MLM, I continue to get paid a commission (actual money, not just a credit on my products) as long as the person remains a customer or a rep.

What is the Best Network Marketing / MLM Company?

I’ve been asked that question a lot lately. Here is my take on it:

There is no perfect MLM company. All network marketing companies have issues. Look at it like this…my husband is the perfect spouse for me. But…he may not be the perfect spouse for someone else. We are a perfect fit for each other. When you are looking for a network marketing / MLM company, you should look for the perfect one for YOU. Not because someone else said it’s the best, but because it’s a fit for you.

Here is what I feel are the things to look for in a company:

1. A product that is reasonably priced in the marketplace.

I spoke with someone the other day who had a very high priced product. I asked her why the product cost so much and she said “Well, first of all, it’s better than anything on the market and second, it’s sold through an MLM company so they have to charge more in order to be able to pay commissions.

WHOA!!! Stop right there…MLM companies can afford to pay commissions because they do not have the traditional costs of advertising that the average product has. All advertising is word of mouth. The price does not need to be jacked up to pay commissions.

Next, there is one question you should ask yourself in relation to your product. This is a question the government will ask if the company ever comes under scrutiny by them. Here it is… “Would you buy your product(s) for the price you are paying IF THERE WERE NO INCOME OPPORTUNITY ATTACHED?” That is the million dollar question. Think long and hard about that one.  Answer honestly.  There is no income opportunity. Would you still be buying the required monthly amount of your companies product(s)?

2. Low barrier to entry.

Can the average person join your opportunity?  Remember, average people are living paycheck to paycheck and most have under a few hundred dollars they can get their hands on.   Many opportunities out there cost anywhere from $250 on up to $5,000 to join.  That is a CRAZY amount of money to ask the average person to come up with to start an MLM / network marketing business.

3.  Products that appeal to the masses

What percentage of people use your products?  Think about this for a minute.

Let’s say you sell a nutritional drink.  Now, what percent of people in your neighborhood do you think use a nutritional drink?  Maybe 15% or so?

What about candles?  Maybe 20% or so?

What about diet products?  Maybe around 35 to 40%?

What about things like toothpaste, shampoo, household cleaners, laundry detergent, etc…  I’d say 100% of the population are already using these things on a daily basis.  That is a product line I, personally, am interested in.  I would rather have 100% of the population already using the same type of products that my MLM sells rather than any other percentage.  Here’s why…all I have to do is help people buy the products they are already buying at a new store.  I don’t have to try to convince the other 50 to 90% of the population to start using these types of products.

4.  Company History

This, to me, is very important.  Most companies do not make it past the first 3 years.  I, personally, would never join a start up MLM.  You don’t know what is going to happen to a company less than 5 years old.  Once a company makes it past the 5 year mark, it’s a good indicator that they will be around a while.  Some people claim that you shouldn’t join a company that is older than 15 or 20 years.  That is ludicrous.  If you have a good company, it SHOULD grow to be over 15 or 20 years.  It should continue to grow indefinitely.

So…where does your company fall in this short list of criteria?  Notice I really did not address compensation plans?  That is on purpose.  I believe that if these things are present in your company, obviously you have a company that is creating paychecks for it’s reps or it would not still be in business.  There are a few more things on my list of criteria that I took into account when looking for my MLM company.  If you are interested in hearing what they are, email me at roxanne at roxannegreen dot com and let me know when we can spend a few minutes on the phone and I will be happy to share the rest of the criteria with you.

Today is the first day of the rest of your life. What will you do with it?