Network marketing
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Table
Of Contents
Chapter 1:
An Introduction
Chapter 2:
Network Marketing in the 21st Century
Chapter 3:
The Google Revolution
Chapter 4:
Finding the Right Opportunity
Chapter 5:
Finding the Right Team
Chapter 6:
Understanding Compensation Plans
Chapter 7:
Methods of Prospecting
Chapter 8:
What It Takes to Be a Leader
Chapter 9:
Interesting New-Age Products
Chapter 10:
Parting Thoughts
Introduction
Network
marketing is not the same old routine it was in the Baby Boomers’ generation.
Several things have changed. Things like door-to-door calls, cold calling, etc.
are just passé. Today, network marketing has gone online in a very large way.
Here,
in this eBook, we shall see how people have taken network marketing ahead and
what you can do to realize its full potential.
Chapter
1:
An Introduction
Summary
Network
marketing isn’t what it once was. Times have changed and so has this concept.
In this chapter we begin to understand how network marketing is placed in
today’s times.
An
Introduction
Whatever may have changed with the
network marketing world, one thing remains quite constant. This realm is just
as competitive as it ever was. And that’s the reason you need to employ
improved strategies if you have to run ahead in the race. People have become
wise to all the new tricks and it is time we brought something new into our
methods.
Network marketing still works with the jungle
mentality. The lions eat the hares.
That’s one thing that has not changed.
Network marketing has
come a long, long way from the fifties when it was first introduced as a business
model. However, there are some things that haven’t yet changed much.
It
is still very important to give good value to the people in your team.
It is still observed that people at the
top (uplines) help the people at the
bottom (downlines). Sidelines help each other as well.
Management
is still of prime essence.
It is extremely crucial to have your own
standing and reputation if you are to make any kind of headway into this world.
Of course, these points are of
timeless importance. The basic essence of network marketing still
follows through in
the 21st century,
but the methods
in which these are planned have
undergone a sea change. Methods of finding opportunities, methods of
prospecting people and methods of
keeping one step ahead of the
competition have decidedly changed.
Here you shall learn how these new tendencies can be
employed to make the best of your network
marketing endeavors. You
can learn what
methods work and what won’t.
At the same time, it needs to spelled out, right here at the outset, that just reading this eBook is not going to make you the next network marketing guru. You have to employ the methods described herein and take advantages of our suggestions if you have to make the business work for you.
Chapter
2:
Network Marketing in the 21st Century
Summary
So how different has network marketing become really?
Network
Marketing in the 21 st
Century
You have to know some important differences first.
Sales Vs Marketing
Prospects have become warier than they ever were.
There are so many
opportunities out there
that it is difficult for them to decide what they must take, if at all. Even if
someone is contemplating on a network marketing business, you couldn’t always
hope to sway them toward your side because there are so many options opened out
to them.
However, network
marketing still remains lucrative and that is one big draw for you to bring
people toward your business. The results that can be expected can be so huge in
monetary terms that they could put most companies to shame.
The emphasis of ‘marketing’ in ‘network marketing’ is
still quite profound. Despite whatever you might have heard about networking
being the most important thing here, you must know that you are, after all,
‘marketing’. This is an important thing
for you to
consider. In fact,
when you are
getting your prospects, make sure
that you get people who know how to market. Networking is fine enough, but what
use is it if you can get your octogenarian grandmother into your network, who
cannot market anything for you?
The days of pumping network with people who cannot
market – read family and friends – should
be over by
now. Today’s network
marketing businesses know that it is extremely important to have
people in the team who can bring about the all-important sales.
Though this premise is slightly different, network
marketing is most assuredly a sales concept. You have to sell things for money,
not just share them.
In the 21st century, the difference between sharing and
selling has become much more
profound, especially over
the Internet. When
you recommend something without any financial gains, like
if you tell someone there’s a really great movie in town that
they must catch,
you aren’t selling.
Selling is what
is important in network marketing – you do this with
monetary gains involved for yourself.
Chapter
3:
The Google Revolution
Summary
Googling might well become an
Oxford entry. It is not a matter of ‘will it’, it is a matter of ‘when’.
The Google Revolution
As in everything
else, the Google
Revolution has swept
the network marketing world as well. A very small
indication can be obtained by simply going to Google and typing in ‘network
marketing’. With 123,000,000 results, there’s no questioning how popular this
search term is, and Google won’t ever be behind to latch on to something that
is so much in demand.
But, why is
Google important to
you? It is
so simply because
now Google has overtaken all other search engines in
popularity. It has become almost an Internet default to search something on
Google. If you don’t know something or want
to find out
something, no one
any longer says,
“I will search
on the Internet.” Instead, they
say, “I will Google it.”
Hence, if you rank on Google, if you get those highly
coveted first page rankings, you
have it made.
Now, Google SEO
is a whole
new concept in
itself. But remember these few
things:–
1. Google
ranks websites on the basis of their
content. So, content remains king.
However, this content
is useless unless
it has the
right kind of content involved in it.
2. Along
with that, Google simply loves it if you update your content regularly. That is
why blogs are tops.
3. Inbound
links are just something else when you are dealing with Google. Get as
many links live
on the Internet
– through articles,
blogs, forum posts, social
networking site comments,
etc. The more
the number of people visiting your site, the better will
be the rank of the site.
Today, working with Google has become like a circle.
You first promote yourself on Google, get the initial trickle of visitors, and
when Google sees that people are visiting your website, they will rank your
site better which will help attract more visitors. It is actually
simple to get
the initial rank
on Google if you follow
all Google-friendly methods. Get in the loop as fast as you can.
At the same time, don’t
forget Google’s value in research. You could use this tool significantly in
finding out what your competitors are really up to and you could enhance your
strategies likewise.
Chapter
4:
Finding the Right Opportunity
Summary
Whatever
hopes you might have, whatever you must have thought about the whole thing,
however much confident you might be about yourself, all that could be squashed
with just one wrong initial move.
Finding the Right Opportunity
Ask
yourself this question
several times over
before getting into
the network marketing venture you
will eventually choose – “Why am I
getting into network marketing?”
Unless and until that still small voice inside you
says that you are getting into it for making money, you are not going to get a
good start.
Think about it. Your
network marketing venture is special because you are in this for the pure and
sole reason for making money. Make this your utmost intention. In the 21 st
century, with the high level of competitiveness all around, this point has become more poignant than
ever.
Here is the
mindset that you
need to inculcate
so that you
make sure you
are landing with the right opportunity for yourself.
You Are a Businessperson
Whatever name your
company might use
for you –
distributor, sponsor, MLM leader
– what you
really need to
know is that
you are a
businessperson, an entrepreneur.
This might be a small business for now, but it has the potential to go as much
ahead as you can dream.
So, what’s the position of the network marketing
company you are collaborating with? No, it’s not your boss as you might think.
It is your business partner.
This is what you need
to keep in mind. You are partnering with this company to make your profits. The
company needs you more than you need it. At least in the initial stages.
Get the Right Company
In order to ensure that
you get the right network marketing company to partner with, these are the
important things that you need to check out:- What
is their reputation? Do they have a great track record?
Are
they permanent? It is a very good idea to check their history. If they are a
long-standing company, you could almost bank on it.
Are they
dynamic? You need a company
that doesn’t mind
planning out and implementing
new ideas. Remember
that in the 21st century,
things are moving fast – too fast actually – and companies that remain
stuck in the mud won’t do much.
Check
their vision out. What do they plan to achieve in the next year? In the next
five years? Can you see yourself growing with the company?
What is
their product? A lot of
your judgment should
depend on what product they are selling. Indeed, if the
product is good and in demand, you have a better scope of evolving with the
company.
Chapter
5:
Finding the Right Team
Summary
Most times, you are your own
enemy. You get in the way of making yourself rich. You need to vanquish
yourself to an extent to get those riches.
Finding the Right Team
When you join in, the team that concerns you is your
upline. These are the people who
are already present.
It is vital
that your upline
is supportive of
you. They have to
guide you through
and then stay
like moral supports
for you. A good
upline is decidedly important in helping you grow your own activities.
One of the things that you need to check out in your upline
is whether they are supportive of new ideas. This can actually be checked by
you at the initial stages itself
when they are
prospecting you. First,
understand what they
say and then tell them of a suggestion or an idea
that you have. Here, you will understand how dynamic they are. Once you have
their answer, you will know whether these will be good people on your team or
not.
Besides that, here
are some things
that you have to
feel out before
you join a network marketing team.
Support
It is ultra-vital that their support should be
speedy. If it isn’t, you might just lose out
on your learning
process and not
make a headway
at all. Support
is not important just
within your upline;
it is also
extremely important within
your downline. If your downline doesn’t provide good support, it could
be a deterrent in bringing new people into the team. It is only when your team
as a whole can provide capable support will other people have no qualms about
joining it.
Being Extroverted
As far as possible, avoid close-knit groups. Such
people have a heightened impression about themselves but it could be very
regressive being with them. The reason
for that is
such groups get
cloistered and don’t
make progress. They remain
cocooned within their
networks, which is
again the whole
concept of network marketing. If
you are into network marketing, it is vital that you reach out to other people.
Chapter
6:
Understanding Compensation Plans
Summary
The
real money is in understanding the compensation plans.
Understanding Compensation Plans
One of the
most important things
for you to
do before going
ahead with a particular network marketing venture is to
find out what kind of compensation plan
they have. There
are several compensation
plans actually. A few of
these plans are quite
simple, but then
there are complicated
plans too, which
might take some understanding on your part.
It is absolutely vital
that you understand your compensation plan in its entirety because this is what
most people will use when they have to decide whether they want to join your
downline or not. You will have to explain your compensation plan to a lot of
people. They will ask you a lot of questions. If you are not able to answer
them, they won’t be so confident about joining your venture.
At the same time, you have to understand the compensation
plan for yourself. If you don’t, you
might not realize
what you are
missing out on.
You might be missing
just small sums
but these could
amount to something
huge when you think about the long run.
Single and Multilevel Compensation Plans
These are the first two that you have to learn about.
Single Compensation Plans
– Most of the
businesses of the world
work on this premise. You buy
something from a seller and you pay the seller the price for it. Now,
the seller could
be an affiliate
or a salesperson.
So the price
you are actually paying the
seller for the product is a commission. In this model, there is just one level
– the seller. Hence, this is a single compensation plan. This model does not
benefit the seller much; it is the manufacturer who keeps the bulk of the
payment that you make.
Multilevel Compensation Plans – Here, you find several
tiers of marketers, each one trying to sell a product. Here, the company that
manufactures the item will
eventually get the
price of the
item, but there
will be a
lot of reduction
in what the consumer
actually pays. The
reason for that
is there will
be a lot of
commissions paid out
to the people
in the network
that sold the
item. Every company has
their own rules
regarding how many
upline members must
earn their commissions on a particular sale.
Now, these are the points you need to bear in mind
when you are looking at the compensation plans of your network marketing
opportunity.
1. Shop
around. Some opportunities pay more than the others. Don’t take up the first
opportunity that comes your way.
2. Multilevel plans
are better than
single compensation plans
because the commissions can have
a better snowballing effect from the sponsors.
3. There
are two types of scenarios here – Some plans pay more commission to people
immediately in their downline and the members in the
downline’s
downline will get
lesser commission. The
second scenario is when some plans pay more to people who
build their networks, in which the
entire network makes
a profit. Make
sure you see
which scenario applies to your
network marketing opportunity.
Besides
that, there are
several kinds of
network marketing plans
within the multilevel framework.
Unilevel Plans
These have the highest
commission for the first level and the commission goes on reducing drastically
for every subsequent down level.
However, the plan has no restriction on how many people earn commissions within
the first level. This plan can be best described by – unlimited width, limited
depth.
Stairstep Plans
There is a ranking system here, and the level that
gets the best rank gets the best commissions.
The ranking applies
to only the
members in the
first level. The other members also get their commissions,
but they are significantly lower.
Binary Plans
These plans are
quite simple and
uncomplicated. Each member
is supposed to have just two other members.
Besides
there, there is
a complicated network
marketing compensation plan known as the Australian two-up which
some businesses are using nowadays.
Chapter
7:
Methods of Prospecting
Summary
Enticing
people to join your team – how to do it?
Methods of Prospecting
Methods of prospecting have definitely undergone a
sea change in recent times. The following are some of the trends that have
passed out.
Cold Calling
With the large
number of highly
effective methods available
currently, no one cold calls anymore. There’s no reason why
someone should call up a total stranger, when it is very much possible to get
targeted people as prospects. At the same time, marketers themselves are
understanding that they don’t like getting calls about
sales methods and
people have developed
a kind of
total apathy to anything that is being peddled through the
phone, even if the company has quite a reputation otherwise.
Invitations
The same applies
to invitations to
workshops and seminars.
They don’t work. People don’t have the time to visit
someplace just to check out what’s happening there. Even after a good turnout,
the conversion rate is abysmal.
So what are
people using nowadays?
Nowadays, people are
going for two
main things. These are classified advertising and Google AdWords.
Classified Advertising
Direct
advertising, or rather
direct response advertising,
is the best
form of advertising that
there is. In
such an advertising
technique, a direct
response is solicited on an ad
impression. This could be an email or an SMS. When people reply to these modes,
they open up a route of communication with the advertiser.
The general route adopted here is:-
Ad impression
Direct response
Lead capture Building the
relationship Pitching the
right offer Following up
or closing the sale.
But
again, the conversion
rate is low,
because you might
have to send
these advertisements to a lot of people in order to get a handful of
responses.
Google AdWords
Chapter
8:
What It Takes to Be a Leader
Summary
Your
network looks upon you with hope. You are their leader.
What It Takes to Be a Leader
You have to
hone your personality
to be a
leader if you
want to survive
in the network marketing world.
If you aren’t the first in the race, people aren’t going to remember you at
all, because no one talks about the also-rans.
That is the reason you need to approach your network
marketing strategies with a bit of caution.
If you don’t
come across as a leader,
you run the
risk of being nothing more than a mere seller of
goods.
One of the best ways to come across as a leader is to
strike right at where the need is. People who sell usually speak about their
products, their features, etc. But this is
definitely the wrong
approach. Instead of
speaking about the
product, you must speak about how
the product can satisfy the requirement of the user.
This is a great quote in this respect:-
Nobody who bought a drill actually wanted a drill.
They wanted a hole. Therefore, if you
want to sell
drills, you should
advertise information about making holes; not information about
drills.
-
Perry Marshall
Be knowledgeable and
pander right to the basest instinct of the customer when it comes to their
requirement. That’s the way to make them understand you know what it takes.
Here are some tips on how you
can achieve this:- Be
natural, don’t be imposing.
Be
cool and casual with everyone, don’t be too pushy. If you are, you come across
as desperate and that’s definitely not the trait of a successful leader.
Teach your
market how to
use the product
and how it can satisfy
their needs. When people see that a product is going to be useful for
them, they will buy it from you and regard you as the leader in this domain.
Be innovative
and dynamic. Take
your methods online;
that’s where the 21st century marketing lies.
Keep
learning.
Use highbrow
prospecting tools. If
people see that
you have prospected them in a new-fangled manner, they
are going to be more respectful to you and your business.
Always
dress like a leader.
Chapter
9:
Interesting New-Age Products
Summary
Here
are some products that are becoming useful in the current scenario.
Interesting New-Age Products
As long as you’re offering cheap info products
anyway, you might as well include a few products that will make you a little
more money on the back end. You can’t
acquire the resell
rights to everything,
but you can
often become an affiliate, which means you’ll have the
right to display links on your front-end page just as if the items were part of
your store. Your visitors will just be taken elsewhere to finish the transaction—and
you’ll make a commission. Just make sure
it automatically opens into a new window or tab rather than taking the visitor
out of your page completely, or you lose out.
Three products are worth your attention. The Renegade Network Marketer, for example, will help train your future
business partners how to go after their target
market, which is exactly what you’ve been doing all along. That’s definitely a skill you want
your downline to
have. Click on
“Affiliates” to make
sure you make your commission on the sale.
Another
good product is Magnetic Sponsoring. These
videos can help
your downline supercharge their work.
Listen, you don’t want to waste your time or anybody
else’s, so the possibilities inherent in providing these sorts of affiliate products
is endless. You can literally
make money on a pre-training program before anyone
ever clogs up your downline.
You’ll avoid dead
downline members who
don’t do anything
except weigh your organization
down, and you’ll
still
make money whether
they get serious or not. What could be better?
You can look to find as many of these products
as you like, but try to make sure you read or use them before you go recommending them. After all you’re basically putting your name and reputation on the line here. If the products aren’t any good you’re not doing yourself any favors by putting them up. Of course, you’re not an affiliate marketer so you don’t want to go too crazy. You want business partners, not people pingponging all over the Internet to read about being your business partner. Try to obtain a happy medium.
Conclusion
Chapter
10:
Parting Thoughts
Summary
Winding it up. A summary of everything in the eBook.
Parting
Thoughts
Network marketing is no less challenging in the 21 st
century than it was before, but the best part is that now you have tools at
your disposal that can help you do things
in a better
way. It is
highly important that
you use these
new tools and evolve, or otherwise you will stay stuck
in the rut and go nowhere.
It is highly important that you use the right
prospecting methods. If you aren’t
able to
do that, you
might just fizzle
out. Remember that
people out there
are using highly sophisticated new techniques even as we speak. Hence,
it is important for you to stay one step ahead of them.
In closing, here are some of the things that you need
to keep in mind when you are in a network marketing business that’s geared for
the 21st century.
Make sure
you are always
abreast of all
the changes that
are happening around you.
You don’t want
to be caught
with inadequate knowledge, which could wipe you out and make
your competitors succeed.
Make
the right decisions. This starts right from the time you choose your
company. Select the
right company –
one that you are
comfortable with and one whose
compensation plans you understand fully.
Another
thing you have to ascertain is that you are with the right people.
Both your uplines
and downlines are
instrumental in your
own success. The upline
guides you and
the downline takes
you forward. Selecting
a company with a good reputation is often an indicator that the people
there are good, but it may not be a confirming factor.
Learn about the various compensation
plans that exist. Contrary to what you think, these compensation plans are what
can make you rich or keep you away from becoming that. Don’t opt for
front-loading companies.
Educate
yourself on new prospecting techniques. Use all the resources of the Internet.
The prospects of today like that.
Evolve
yourself into a leader. Enroll yourself into personality development
programs if needed.
Learn what the
customers really require
of you and give them just that.
Conclusion
This
was the new wave of network marketing, something that is much needed if you
want to achieve any semblance of success today.
Use
these techniques and see your venture soar.
