The birth of the Internet has led to many revolutionary changes and has even nurtured a burgeoning industry, the infamous Dot Com industry.It is an industry that has allowed many ordinary individuals to become millionaires; however, it has also caused the downfall of many when the Dot Com bubble burst.
More and more businesses have expanded into the Internet and it is no surprise that network marketing companies are also looking to operate online. In a nutshell, network marketing is basically a new business model that bypasses the middle man in the distribution chain where the cost savings goes to the distributors and/or the customers.
In addition, existing distributors are able to sponsor others to help them, operating in a way similar to franchises, thus earning the term “human franchise”.
A big question still remains.
“Can a perfect synergy between the Internet and Network Marketing be achieved?”
Judging by past examples of Ebay, Amazon.com, and other online businesses, there appears to be vast potential for a home based network marketing business through the Internet. There are already countless online business opportunities, many applying systems or compensation plans based on conventional network marketing.
“How can one be a successful network marketer online? Is it possible to build an active organization online that will bring you residual income?”
This article will not delve deep into the intricate workings of networking online, however, a 4 step guide to operating a Multi Level Marketing (MLM) business online would be provided instead to provide beginners with a general idea on how to build a successful home-based Network Marketing business.
Step 1: Get out and Start recruiting
MLM is also known as network marketing and for a very good reason. To be successful in the network marketing industry, one has to “network with people” and “market products or services”. This is also why network marketing is also called word-of-mouth marketing or viral marketing . The bottom line is you have to get out and sponsor like-minded individuals into your organization, be it housewives who want to earn extra income or people who are looking to achieve financial freedom.
And the answer is leverage.
What is leverage?
Perhaps a simple illustration will allow you to get the picture. Think of Bill Gates. While he is sleeping, the other half of the globe is actually working for him. How is this possible? This is because Bill Gates receives royalties from every sale of a Microsoft product and the products are being sold across the entire globe. Bill Gates does not need to be physically selling his products; instead, he has others do it for him and receives a small cut from the sale.
The same effect occurs when you recruit or sponsor someone into your network marketing business. From the moment you sponsor your first person, you have obtained leverage. This is because you have 48 hours to work with now instead of 24 hours when you work alone.
Leverage is exponential. After you have sponsored your first person, this person would also want to expand his organization by sponsoring others who is also in turn part of your organization.
Using some arbitrary numbers, you can see the exponential effect for yourself. You should also aim to sponsor “business partners” and not “employees”. It’s important to get the correct mindset that network marketing is not a job but a business which is why one should not evaluate it just like how you would evaluate a normal job.
In the network marketing industry, people you have sponsored are called your “downlines” and you are their “upline”. Network marketing is a people business, trying to do it alone, superstar salesman style will defeat the purpose of the business model. Do it smart by duplicating more of yourself to increase your income potential.
Step 2: Monitor the sales volume of your organization
As more and more people become a part of your organization, it is important to keep track of their individual sales record as well as statistics on the organization’s sales volume as a whole. Operating an online home-based network marketing business provides some advantages in this case as many online network marketing companies provide their members with an online portal where they can view their sales volume anytime.
Keeping track of the personal sales volume of each individual in your organization will allow you to identify who is having problems so you can focus your efforts on them. It also allows you to identify who are the potential high flyers that you can groom into future leaders in your organization.
Step 3: Monitor your inventory
Once you have accomplished step 2, step 3 becomes natural as it is important to ensure a steady supply of products to the customer to ensure customer satisfaction. Always anticipate the level of demand for the month and stock up enough products to prevent lags in meeting demand. If your products are electronic, you will not have to worry that you have lack of products supply.
Step 4: Train the members of your organization
Network marketing is a people-helping-people business. You cannot succeed if your downlines don’t succeed. Therefore, it is important to ensure that your downlines are as good as or better than you are. A newcomer into the network marketing industry will usually face obstacles in their early stages and it is vital that mentorship is provided for them to tide over this initial stage.
Important knowledge such as network marketing know-how, sales techniques, communication skills, speech craft are all important to a network marketer. A newcomer would not be able to obtain the skill set necessary for him or her to succeed within the shortest time without a supportive mentor.
Thus, it is important that you, as an upline, pass on as much of the skills and techniques that have allowed you to succeed to your downlines. This process is called duplication. You are actually creating more “yous” to boost your income potential. One superstar salesman can earn $6k a month, duplicating this superstars salesman will double the monthly income to $12k and so on.
Training needs to be both progressive and consistent. The end result is to groom each of your downlines into future leaders for your organization so that you can enjoy financial freedom by earning a large passive income when you organization goes on “autopilot”. In addition, it is also important to upgrade yourself so that the whole organization learns and improves together.
All in all, network marketing works on relationships and is a people business. It is important to learn to help others in this business. Now that you have a general idea on how to go about starting your own network marketing business.
It is time to take action! As Brian Tracy has said, “Setting Goals And Having Ambitions And Dreams Are Naught Without Action”.
Therefore, start today and take one step closer to financial freedom!