If you have ever been approached by someone looking to recruit you into a network marketing company, you have probably heard one or more of these statements.
Anyone can make big money in a network marketing comapny.
Sure anyone CAN make big money in network marketing, the real question is; will they? Given the right company, with the right pay plan, you can make money with network marketing. Even big money. Why won’t everyone? Because just like in a “real job”, your success will depend on certain factors. Many of these factors are the same, some are different. You have to be self-motivated when you are working for yourself. You must persevere and be persistent in your efforts. You have to be goal oriented and have a plan for your business and continually work towards that. The real truth: Hard work is involved; you can’t join a network marketing company, sit on your hind parts and expect to rake in a million dollars a year. (You can’t do it at a salaried job either, so that is really no surprise.)
The products sell themselves, so you don’t have to.
We all know the product, whatever it may be, just won’t fly off your shelves or out of the back of your car without your “selling” them to someone. You have to talk to people and you have to present them with an opportunity to buy what you are selling. The real truth: A good network marketing company will have a quality product that people will want if they just know about it. If I tell another woman that I went from a size 16 to a size 12 in 8 weeks by using my products, then chances are they will want it without further conversation.
Did I sell to them? Of course I did. Did I have to sell hard? No. Thus we hear that the products sell themselves, when what is actually meant is that the products are no-brainers. They work, who wouldn’t want them? I have a quality product that yields results and all I had to do was share what has happened for me. We all “sell” things everyday for other people. How many times have you recommended a movie to a friend or a new service you have tried and liked? That is what you are doing in network marketing at it’s very basic definition, only you have profit attached to your recommendation.
You don’t have to keep a large amount of products on hand, and you CAN make money just selling your products.
The key here is finding the right network marketing company. Most of the misconceptions that people have about direct selling companies have been caused by a bad experience with one or two companies and those have tainted their view completely of all network marketing companies. Find a company that does not require you to purchase large amounts of product that you will never use or sell. You should not be encouraged to purchase tons of products just to meet a quota or commission level without having customers purchasing these products. In fact, the company that we decided to work with has a rule that 70% of all your purchases must be consumed or sold before you order more. They want you to have customers.
This is how money is made with this company. Sales must be made by you and by your downline to support the movement of product. Some debate whether products personally consumed by a distributor should count towards the 70% rule. Why shouldn’t they? Whatever we are selling, whether it is dietary supplements, clothing, long distance, food…we would be purchasing it elsewhere were we not selling it ourselves. Should we not be considered legitimate consumers? (But maybe this is a discussion for another article?)
The big money in network marketing is in building a team and having a downline of distributors under your leadership. But you can still make money just by retailing products. If you can’t make money selling at the retail cost, then perhaps you should reconsider the company you are dealing with. If you signed up and didn’t sell the first bit of product, yet you received a few huge checks, then don’t expect it to last. I was once involved with a company that I didn’t pay to join, didn’t sell the first bit of product, didn’t recruit or train anyone (though some were PLACED under me); I got not one, but two, one thousand dollar checks before the company and their ill performing products went away!
The people who have been in longer, and are above a lot of other people make all the money.
This is not always true, but it does stand to reason that someone who has been diligently working the business longer, and has built a larger team and is doing larger sales volumes will make more money than those who are new and have no team or customer base. After two months in my current networking marketing company, I was making more than my sponsor. He just wasn’t working the business. My upline leadership makes more than their sponsor. Why? Their sponsor quit pursuing the business as well. No matter when you get into a business opportunity, there is room for you to grow and build your business.
And the reverse works also; no matter how long you have been in a network marketing company, if you fail to keep working and growing your business your profits will decrease. Neither I or anyone else can guarantee you that just because you sign up a million people, that you will make a large amount of money on a steady basis. You are not going to get rich quick with no effort and you can’t just sign up and rake in the big checks. You have to work; and those who have been working it longer will usually be making more money; not just because they have been in longer, but because those with sticking power are usually working the business hard and have learned what to do and how to sell their product and their opportunity. Ineffective, low producers will probably not stay with the business long enough to see the financial rewards and were probably not doing what was necessary to produce them.
There are reputable, honest, money making network marketing companies and opportunities out there for you to join.
This one only seems like an untruth because there are bad companies out there and once you have had an experience with one of those, you don’t usually have the open mindedness to trust another opportunity. Especially if your second experience is negative. Pretty soon you shut down completely at the mere mention of direct selling, a network marketing company or MLM (multi level marketing). In reality, there are many out there who are success stories and have made great fortunes in this industry without cheating their downlines or pumping up false sales to get bonuses.
Sometimes a company is bad-mouthed by a distributor who feels cheated out of commissions or sales when they really didn’t understand what was required of them. If you have to renew your distributor fee yearly and you fail to do so; you will lose profits, sales, maybe even your downline. This may have been a miscommunication between you and your sponsor, or you misunderstood the requirement, but you should make yourself familiar with your agreement with the company and all the requirements yourself so that you don’t run the risk of doing or not doing something that will cause you to forfeit your hard work. If your distributor agreement specifically states that you are not to recruit your team into other business opportunities, then don’t try to sign them up for your next big venture. Definitely don’t be surprised when the company turns on you after doing such.
We recommend that you research the company and it’s pay plan. Talk to current distributors and get their thoughts on the company and how you can be successful selling their products. Despite many distributors’ high pressure tactics, and their suggestions that you sign up RIGHT NOW; if the company is reputable and the pay plan works and the products are quality, then waiting won’t discourage you from being involved. However, it is all about timing and getting things done quickly to see profit soon. Don’t put off a good chance by being overly critical and cautious. Where will you be in a year if you do nothing, versus where you could be had you signed up and got moving?