If you've decided to start a network marketing or MLM business, and done some research, you've no doubt read a lot of opinions about this business. You have probably found some intense debates between pro-MLM business builders and others who are very negative and totally opposed to the idea.
There are two issues that seem to come up over and over, and you almost always find these brought up anytime network marketing and MLM is discussed. While there are many interesting points on both sides of these issues, here is a balanced look at both.
The Promise of a Sponsoring Explosion and the Product Sales Question
This is one of the most popular points that you'll see discussed. It typically goes something like this. "Potential MLM recruits get fired up at the thought of sponsoring people and seeing their downline explode, but somewhere along the line someone will actually need to sell the opportunity's products to someone, or nobody makes any money."
I believe it's better to look at it this way. Product will need to be bought and consumed by someone down the line. This can be personal consumption by the distributors themselves, or sales to customers. In a decent network marketing opportunity, you'll have products that people want to use. Just spreading the word will create sales to consumers, as not everyone will want to participate in the business opportunity.
That said, if someone believes you can start a business and just recruit people and nobody uses or sells the product, certainly you will have the negative scenario that MLM naysayers often refer to. This can happen when there is incentive to recruit based on bonuses paid on start up package purchases, along with heavy emphasis on recruiting only.
If the whole scheme is focused on recruiting and making money from sign up bonuses or commissions on start up packages, in the absence of a quality product with value for ongoing sales and usage, you have some issues. The good news is, with a legitimate MLM or network marketing opportunity, this won't happen. A legitimate MLM business plan will highlight recruiting and sponsoring as crucial activities, but all of this will be built around a quality product line that people will actually want to use whether they get paid for promoting it or not.
Recruiting Friends, Relatives, and Acquaintances
This is a topic that pops up often in MLM discussions. It goes like this. "You sign up for an MLM business, and make a list of everyone you know. You approach all these people and present your business. Once you've worked through that list, and aren't rich yet, who do you approach then?"
In past times, this was really a problem. Even today, some new network marketers are taught only to present the business to their warm market. The hope is that they will sponsor a few of their family or friends, and in turn these people will approach their own warm market and do the same thing. In theory, this will create a big downline group for you and generate a lot of income over time.
In reality, it usually doesn't work that way. Eventually, for most network marketers, it will become necessary to go outside that warm market if you want to expand your business to a full-time income level and beyond. This is where the Internet and modern technology has changed things so much.
Success in network marketing and MLM is no longer confined to who you know and how well you can work that local warm market of friends, relatives, and acquaintances. Anyone now has the opportunity, with the proper coaching and support, to tap into a virtually unlimited pool of prospects who are actively seeking ways to work from home or start home based businesses.
MLM and network marketing as a business continues to evolve. Things are different now, and old perceptions are becoming less and less accurate. Once a function of how many people you know and your selling skills, today the key to success is attracting home business prospects to your opportunity when they are serious and ready to take action. This will continue to be the key to success in the future.
There are two issues that seem to come up over and over, and you almost always find these brought up anytime network marketing and MLM is discussed. While there are many interesting points on both sides of these issues, here is a balanced look at both.
The Promise of a Sponsoring Explosion and the Product Sales Question
This is one of the most popular points that you'll see discussed. It typically goes something like this. "Potential MLM recruits get fired up at the thought of sponsoring people and seeing their downline explode, but somewhere along the line someone will actually need to sell the opportunity's products to someone, or nobody makes any money."
I believe it's better to look at it this way. Product will need to be bought and consumed by someone down the line. This can be personal consumption by the distributors themselves, or sales to customers. In a decent network marketing opportunity, you'll have products that people want to use. Just spreading the word will create sales to consumers, as not everyone will want to participate in the business opportunity.
That said, if someone believes you can start a business and just recruit people and nobody uses or sells the product, certainly you will have the negative scenario that MLM naysayers often refer to. This can happen when there is incentive to recruit based on bonuses paid on start up package purchases, along with heavy emphasis on recruiting only.
If the whole scheme is focused on recruiting and making money from sign up bonuses or commissions on start up packages, in the absence of a quality product with value for ongoing sales and usage, you have some issues. The good news is, with a legitimate MLM or network marketing opportunity, this won't happen. A legitimate MLM business plan will highlight recruiting and sponsoring as crucial activities, but all of this will be built around a quality product line that people will actually want to use whether they get paid for promoting it or not.
Recruiting Friends, Relatives, and Acquaintances
This is a topic that pops up often in MLM discussions. It goes like this. "You sign up for an MLM business, and make a list of everyone you know. You approach all these people and present your business. Once you've worked through that list, and aren't rich yet, who do you approach then?"
In past times, this was really a problem. Even today, some new network marketers are taught only to present the business to their warm market. The hope is that they will sponsor a few of their family or friends, and in turn these people will approach their own warm market and do the same thing. In theory, this will create a big downline group for you and generate a lot of income over time.
In reality, it usually doesn't work that way. Eventually, for most network marketers, it will become necessary to go outside that warm market if you want to expand your business to a full-time income level and beyond. This is where the Internet and modern technology has changed things so much.
Success in network marketing and MLM is no longer confined to who you know and how well you can work that local warm market of friends, relatives, and acquaintances. Anyone now has the opportunity, with the proper coaching and support, to tap into a virtually unlimited pool of prospects who are actively seeking ways to work from home or start home based businesses.
MLM and network marketing as a business continues to evolve. Things are different now, and old perceptions are becoming less and less accurate. Once a function of how many people you know and your selling skills, today the key to success is attracting home business prospects to your opportunity when they are serious and ready to take action. This will continue to be the key to success in the future.
About the Author:
Eldon Beard is a successful network marketing leader and coach. Find out more about how you can make money with network marketing and discover the secrets of mlm success.
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