Introduction to multi level marketing (MLM)
Recently, there have been several business outlets with promises that you can make money either as full or part member. For most people, MLM seems to be the name that stuck most especially in the USA but actually, it is abbreviated.
MLM simply means Multi Level Marketing, otherwise known as Referral or network marketing. It is very difficult to get a legit one these days with the increase in getting rich quickly syndrome in the world, even in this midst of this doubt, we still have some companies in the USA who give in their time for a solid business platform.
What is Multi-Level Marketing (MLM)
Unlike what you have seen everyday on your street or in your environment, MLM is not the act of product-making by the manufacturer which is then passed to the distributor for effective discharge to the retailer. The consumers are always the final piece of the puzzle. MLM is quite different from this traditional method.
In layman language, Multi-Level Marketing is when a company use their present customers or distributors to sell their products with a promise to pay them a percentage.
It follows the pattern of a chain reaction as the new customer or distributor brought into the fold may become the next phase while keeping the others.
How does the Multi Level Marketing MLM scheme work?
Unlike what is obtainable in the traditional method of distribution, MLM involves you recommending products to friends and families. On purchase, you are entitled to 10% to 30% of the fee depending on the term set by the companies.
To be a force, you must be a great salesperson if you want to earn much on MLM, the power of oratory will go a long way in convincing potential buyers. It gets easier if you know how to use social media to your advantage.
Who will not want to buy products he or she is interested in after confirming from friends and families who use them? You can also connect people to the program if you want to scale up. Referring people is most beneficially and could speed up your progress quickly.
It is better to have access to a great network of people if you really want to make a passive income. Social media is a great tool for that, Facebook currently has over a billion users, it is a place where you can connect with people easily either as a regular user or making use of facebook ad.
Other available platforms are Twitter, WhatsApp, LinkedIn, Instagram and many more. You just need to find the best angle that works, be it just normal post into your timeline or squeezing out the benefits of ad as marketing tools.
Don’t think of Multi Level Marketing (MLM) as a way to get rich quick. It is a process as it takes lots of efforts on your part to be at the centre of it all.
Steps to become successful in Multi Level Marketing (MLM)
- Find the right company or a company that has what it takes to become a force.
- Buy and use the company product.
- Get a sponsor.
- Attend training offered by the company or leader.
- Make the internet your friend.
- Ask for feedback from the buyers.
- You need to realise patience is a virtue.
Find the right company or a company that has what it takes to become a force:
finding the right company will be easy based on testimonies from others or one on the internet. The right company could mean a company who has already made a good name for itself.
For someone who is just starting, no one does better than a company which is yet to make a name. The incentive is always high plus other benefits you will enjoy. The downside is that it is not known already so convincing people could be hard but if you can manage, you can earn your way into making good cash before others start noticing. Why not be the first?
Before you choose the company, make sure that the company has a good project at hand and understand the business well. If you are not convinced about trying out the company, settle for the already established one.
Buy and use the product
How will you convince people to buy when you have no idea of how it works.
There must be lots of questions surrounding the products, as one who is likely to put herself or himself as a referer for the company, getting familiar with it is the first step.
Let your friends and family have access to it if possible, no better way than to get undiluted information or review about the product. You don’t want to sound unconvincing when potential buyers ask you a question.
Get a sponsor:
No matter how much information you have at hands or how much you know, you need someone as a roadmap. Someone who has been there and know what it takes to be a referer. Someone who has had long-term success and not just one in a blue moon.
It makes the job easier when you have someone who tells you what to do and how to it and not at the expense of not trying other new methods. Sieve the knowledge you got and use it to make a better judgment. Learn from someone mistakes and experience if you really want to go far in your business journey.
Attend training offered by the company or leader:
No matter how much you know, the company or the leaders know more than you. Attend training or seminar arranged by the company, make an effort to learn from the experts. That gives you a big advantage and help you market your product easily.
It also gives you the opportunity to ask questions about what might have confused you and if you are lucky, you will get a good mentor there.
Make the internet your friend:
Social media is the perfect outlet to make things happened. It is also the cheaper alternatives as you get to save time and money following up on potential buyers.
Get new people using Instagram, twitter, facebook and other social platforms. Write a review to convince them that the product is good. Answer questions quickly as potential buyers generally hate waiting for so long. Doing all these will further help you gain their trust quickly and in no time, you will convert your leads.
Ask for feedback from the buyers:
People do undervalue the importance of collecting feedback from buyers or users.
If you study the everyday relationship long enough, you will understand that the key to keeping up with people close to your heart is by engaging with them. If you are into retail selling, do you care to notice the trend between those who ask and those you do not ask after sales?
You will never be able to give in your best to the customer until you start asking for feedback. It further enhances the relationship, which then results in gaining their trusts and confidences.
Their opinion is important for your own growth as you are now the channel to the company. If ever there is a wrong use, peradventure, something went wrong, it is your duty to take the feedback to the company. If it is a positive one, you get to enjoy an increase in the sale when you ask, that one customer can lead to getting more customers. More customers mean more commission and increase in your passive or residual income.
You need to realise patience is a virtue:
Don’t beat yourself too much if you are not getting desired results quickly. Instead, use it as a catalyst to get what you want.
Just like most successful businesses out there, there is always a slow period especially when you are just hitting the market. Focus your energy in experimenting trends, learn from your mistake and be the best you can.
Put it at the back of your mind that the journey of a thousand miles begins with a step, you are just taking your first step so it might take a while to get to your goals. You might not be turning profit now but you will if you are able to turn every disadvantaged scenario as a lesson to be the better you.
Constraints to Multi Level Marketing (MLM)
Like all businesses, Multi Level Marketing otherwise called Network Marketing is not peculiar. It has its own problems and solving these challenges is the key to be a success in the referral marketing campaign.
Let’s take a look at some of the biggest challenges of Multi Level Marketing (MLM)
- Persistently asking you to refer people you know.
- Marketing difficulties.
- Keeping in line with the changing world.
- Keeping customers close is a challenge for most people
Persistently asking you to refer people you know:
We understand that the key to a successful campaign is to grow your network and which is mostly done by interconnecting with your friends, acquaintances and family on a personal level.
While doing this may be a good thing but what happens when they are unsatisfied with the product or join the company as referent only to discover that it was all sham? This alone could end your relationship.
Not many are disposed to try Network Marketing. For most people, it is just a sham which is intended to take from unsuspecting people.
There have been widespread news of companies that are bent on doing anything just to get people on board, mostly shady ways. Not helped either by dent as seen with several companies which have now been liquidated. The money, time and resources gone with no way of getting it back.
The first impression does matter a lot. When people first experience is unpleasant, it is always difficult to regain trust. Companies and referrers must do enough if they want to gain public confidence.
Keeping in line with the changing world:
What worked years ago may not work now. For example, before the advent of the internet and mobile phones, keeping in touch with people is very difficult. There is no way to get a quick response except through telex or landline which most people do not have.
There are now lots of tools to use, if you feel what was previously obtainable no longer the trend, it is time to adjust to the new set of rules or at least create a better one. Search online for ideas, go seminar or training, skype chat your way if that is what it takes. There are lots of ways you can do it better than the other. You can’t be stagnant with the old rules and expect success.
Keeping customers close is a challenge to most people:
If you think after sales of a product or when the referent joins the community, it is all over. You are on the wrong side.
You will have to check on them from time to time, answer questions and most importantly, feedback.
With the increase in technology, it is now easier to keep in touch using auroresponder or having a lists of messages in your doc to be sent to prospects or buyers. When they join, you will still need to train and equip them. The cost, time and resources could be a constraint to the success of network marketing.
Does Multi Level Marketing (MLM) worth it?
Of course, it does. If you know your onions well, it wont be long before you start smiling to the bank. But first, self belief is the first step, so many failed because of lack of self belief. Why would anyone want to do business with you or join the rank if you are unconvincing.
You must also possess marketing skills, most especially be courteous in your approach with people. If you do not have that, becoming a force will be a problem.
Let me be honest with you, the failure rate supercedes the success rate. Only few get to make waves with MLM but the question is are you setting up yourself for success or failure?