The Network Marketing Business Model Explained

There is a constant stream of folks looking for ways that they can enhance their lives with some kind of business that they can run from home. Some good and some not so good.

There is a long standing home business that I’m sure you’ve heard of and that’s network marketing, also sometimes called MLM. This is a business model where anyone can get started with a company and have the potential to make some good money and even create a passive walk away income. In such a business model, in order for money to be made, product must be sold to end users, but there is the potential to also earn from the sales of people that you also introduce into your business. This follows suit down the line.

You may find that you can earn commissions on all the sales that are made in your organization to an unlimited depth. It won’t take a genius to work out that you could end up earning a ton of money if you are able to produce duplication within your team. MLM does certainly offer a unique opportunity. A common practice is to find five or six people that you will work directly with and the idea is to train them to also find a small number of people to work closely with. If you are successful and this duplicates throughout your team then you are ‘quids in’.

Network marketing has actually been responsible for creating more millionaires and independently wealthy people than any other business model. Bill Clinton has previously publicly endorsed network marketing and you can find videos of this on the internet. It really is a fantastic business model that creates LEVERAGED income, do the work once, be paid over and over.

Although such a great business model the reality is that not everyone makes it big in this industry. Failure rates are as high as ninety seven percent. There are a variety of reasons for this, but the truth is that although it’s a powerful business model you still need to be skilled at selling and recruiting.

Many folks will not get the success they want, they are sold on promises of easy riches and quit once it becomes clear that it’s not all as easy as first thought. You need to invest in your education and quite frankly you need to be good at building relationships as the whole principle of the business is ‘person to person’ referrals.

Another reason for the high failure rate is the lack of training from the companies themselves. Often you will be told to make a list of your friends and family and try and sell products to them and bring them into the business. For most this simply doesn’t work, they don’t know enough people or the people they do know are just simply not interested.

The people who make it big in this business are those who know how to position themselves with the right posture and attract people to them, they also have figured out how to generate a consistent flow of leads on a daily basis. Network Marketing is a numbers game, and you will need to get through a LOT of people to get a decent number of people who say ‘yes’.

Three Critical Marketing Mistakes Small Businesses Make And How To Avoid Them

Are you ready to take your sales to the next level but don’t know what to do or where to begin? You’re not alone. It’s amazing to me how many small business owners do not understand or appreciate how important their marketing is to the life, health, and growth of their business. That’s because, in most cases, they are making one of three critical marketing mistakes that can lead to lack of growth and even business failure.

In fact, according to the US Small Business Administration, more than 50% of new businesses will fail within the first five years!

Here are three critical mistakes you must avoid to be sure your business isn’t one of them.

1. Not Creating a Written Marketing Plan and Budget

Most experts agree that the fastest way to growth and profitability with your small business is to have a written marketing plan that includes a monthly or quarterly budget.

Unfortunately many small business owners dismiss this advice choosing instead to fly by the seat of their pants where their marketing is concerned. The result, more often than not, is poor results and even outright failure. That’s because it’s always a good idea to know where you’re going and how you’re going to get there before setting off down the road.

First, take an inventory of the marketing strategies that have worked best for you or others in your business or industry in the past. Some of my clients tell me they generate the best results using direct mail. Others are partial to online direct response ads. Still others use conventional advertising such as newspaper, radio, or television. The kind of marketing you decide on is outside the scope of this article. The critical thing to remember is to make a decision on how you will market and fund your efforts, put it all down in writing, and then stick to your plan.

2. Not Developing a Competitive Advantage in the Marketplace

Most business owners cannot identify their competitive advantage let alone communicate it effectively to their customers and prospects. Think about it. What sets you apart from everyone else who does what you do? What unique advantage or benefit does patronizing your business gain for people that they cannot get somewhere else? If you don’t have a good answer to this question you will never be able to maximize your results and dominate your market-no matter how good or clever your advertising is.

3. Not Communicating The Benefits

Marketing and sales is all about communication. As soon as you have learned to communicate the unique reason or reasons why people should do business with you instead of your competitors you will be in a position to persuade them to buy from you.

Of course, one of the most important parts of effective communication lies in understanding each other clearly and accurately. That’s why your marketing needs to speak the language of the person you are speaking with. If you knew that your prospects spoke only English, you wouldn’t speak to them in Russian or Chinese would you?

One of the biggest reasons businesses fail to communicate and persuade effectively is that they often are speaking to the prospect in a different language than the one the prospect speaks. I’m not talking about actual languages. I’m talking about directing your communication towards the one and only language your prospect is always tuned in to listening to. That is the language of benefits.

Too many businesses use their marketing as a hammer to try to beat the customer over the head with logic, facts, and figures. They think that if they can just tell the prospect enough about their company or their product or service, it will result in a buying decision. Unfortunately buyers are not interested in hearing about you, your business, or how great your product or service is. They are interested in one thing only. “What’s in it for me?” Answer this question and you will find yourself speaking their language. Learn to speak it fluently and an incredible boost in sales and revenue will never be far behind.

So how do you learn to speak in terms of benefits to your prospects and customers? It’s simple. After you tell them about you, your company, or your product or service, tell them what it means to them. For example, if one of the features of your club membership is a swipe card with 24 hour access, say, “You will receive a membership card good for access 24 hours a day which means you will have the added convenience of being able to work out any time you’d likeāˆ’even in the middle of the night!”

Once you have your road map in place in the form of a written, well funded marketing plan, have created or identified your competitive edge and are clearly communicating the benefits to the customer in everything you do, you’ll not only have avoided three critical marketing mistakes most businesses make, you’ll be on your way to dominating your market.

Are You Aware of The Small Business Marketing Mistakes Online Marketers Make?

Making mistakes is human and part of the learning process. But to succeed in your business, you need to be aware of those small business marketing mistakes so that you do not fall prey to them. When you run an advert, you expect good returns. That’s the reason why you are in business. But in the quest of getting the returns, many online marketers make small business marketing mistakes and end up blowing their money and getting disappointed.

To succeed in business, you have to market your products. Marketing is what you do to communicate to both your existing and potential customers. If you are spending money on marketing your business, it is important that you know what works and what doesn’t. It’s important to avoid falling prey to the following small business marketing mistakes.

1. Doing too much too quickly when making mistakes. Most people expect to get returns so quickly that they end up doing so many activities that do not work for them. Many online marketers, especially new ones, fall victim to this common small business marketing mistake.

2. Wasting money, energy and time repeating what doesn’t work. As an online marketer, you need to spend your valuable resources on sustainable marketing strategies that will work best for you.

3. Not knowing what works and what doesn’t to make informed decisions. Spending money blindly without getting to know what marketing strategy works may not only waste your resources, but can also lead to disappointment. I therefore advise online marketers to get good information and the know-how by visiting forums, where experienced marketers discuss various marketing strategies.

4. Not keeping good record of your customers’ contacts. As a serious online marketer, you need to keep a record of your customers’ contacts for easy follow-up.

5. Not giving a genuine reason for someone to buy from you. People naturally do not want to be sold to. When a customer buys your product, it’s not the product per se that brings him/her to your business. It’s the satisfaction he derives from using that product. You have to provide him with that invincible satisfaction to continue buying from you.

6. Thinking that business will come to you. This is one of the commonest small business marketing mistakes many affiliate marketers make. After signing up for a program, they sit back thinking that things will work out by themselves. That’s not how it is. You must spend your time every day developing your business. Additionally, you must spend some money in order to make money.

7. Untargeted attempts to generate traffic. Use proven marketing strategies to drive targeted traffic to your website or blog.

8. Jumping from one failed idea to another without stopping to think. A serious online marketer will always track the progress of each marketing strategy. By so doing, you get to know what works well and what doesn’t other than jumping from one idea to another.

9. Relying on only one or two methods of generating business, is one of the small business marketing mistakes amateur online marketers make. To drive traffic to your website requires applying several proven methods.

10. Having your marketing plan in your head other than having it written down. Write your plan down and follow it systematically to produce good results and to spend your resources wisely.

11. Making poor decisions about what to invest in is another small business marketing mistake many affiliate marketers make. Get to invest your time and money on programs that will bring returns.

12. Claiming that you have no time to do the marketing. Online marketing requires a lot of time. If you think you can’t find that quality time, then you better leave the marketing business. I spend at least 3 hours every day on marketing.

13. Believing that you do not have marketing skills. We all have some skills but we only have to improve on them through learning. Read and participate in forums to better your skills.

14. Thinking that online marketing is complicated. There is nothing easy. Making money has never been easy. Online marketers, who make money, persist a lot. There is nothing impossible because the word “IMPOSSIBLE” simply means “I’m possible”. Develop in mind a positive perception about online marketing, you will enjoy and find it easy.

15. Pulling out of the business is the worst mistake you will ever make. One of the most causes of failure is the habit of quitting when you are faced with a temporary defeat. Carry on and on. When riches begin to come, they come so quickly in such a great abundance that one wonders where they have been hiding during all those years.