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Network Marketing Start Up

“Definition: A business model in which a distributor network is needed to build the business. Usually such businesses are also multilevel marketing in nature in that payouts occur at more than one level.” Excerpted from Entrepreneur.com

When you decide that network marketing is the home-based business of choice for you, there are several “behind the curtain”, nitty-gritty, realistic facts you need to face before start up. The ideal start up would include expert advice from a successful network marketer. There are many books on the subject; but before jumping on to Amazon, however, I suggest you walk into a bookstore and browse through a few before you buy. There are many different approaches to this business, so you want to be sure you are following the network marketing philosophy that feels comfortable to you.

Note! I generally do not recommend eBooks to a marketing start up because, although they may have very good information, it is more likely the eBook was written with the intention of capturing your information, so the author now has you as a prospect. The auto responder will begin cranking out those drip emails to you immediately. It is confusing to the networking newbie, and what you need as a start up is clarity!

Here is one example of building a prospect list: some high income earners buy prospects names, email address, and phone number; then they dial (sometimes up to 500 a day with an auto-dialer!) expecting to sign up 4% or 20 of them. And, they do this five days a week and twice on Saturday. These leads are batched in many ways…for instance, 5000 local leads in a single zip code. If you find a lead generation company that will negotiate with you, (any start up business requires research!) these leads may be ten cents each. The success is in the numbers!

Sidebar: Now, this example is a network marketer with advanced sales skills. A start up marketer, unless they have had a background in direct sales, will not be that successful using this technique. It is a low cost means of start up, being that the leads are cheap and your time is worth nothing. Sorry…this is one of those realistic facts.

Another example, and my preference, is called attraction marketing.. It is a well thought out campaign that many marketers refer to as “5-point prospecting”; it means using five different marketing methods that will attract prospects that want what you have to offer. This takes time, but it is worth it! Depending on your budget, the most effective is a mix of classified ads (online & offline), direct mail pieces, mini-websites (just two pages that include a pitch page, or sales letter, and a capture page where the interested prospect leaves their contact information for you), press releases, article submission (like this one!), collateral marketing, (i.e.: CD or DVD mailed), and the old fashioned “sharing” your business with interested people that you know and have expressed an interest in what you do. The goal of any serious network marketer is to own their own website…therefore “branding” themselves as a business entity.

Note! I bolded “expressed an interest” for this reason...97% of network marketing start ups are out of business in 90 days! It is not worth arm twisting Aunt Marge to join you in business and risk your families’ good will.

I cited two extreme examples, and there are many variations of these extremes. But you must understand…they both make money. So it boils down to another realistic fact: How bad do you want a home based business, and how hard are you willing to work? If your start up budget allows, a true expert, consultant, experienced business coach is going to cost you money. Personally, I spent many, many hours researching online bios of the greats in network marketing. The book, The Greatest Networker in the World, is about the success of John Milton Fogg; I recently received an email from him because I subscribe to his newsletter. He was announcing he had a few openings for his mentoring program; the cost was over $2000.00.

Some might consider this a little backwards, but you must plan on treating your business like a business from the start up, and that begins with your mission statement, strategy, and how you plan on attracting people who want to join you in business. These team members are going to be looking for your leadership, and, you want retention in your downline…that means true residual income for you and them. Win…Win! So, please take your time in this vital area as you begin your start up network marketing plan.

Books I Like:

Finding a Leader

You know, network marketing is kind of like one big “follow the leader” exercise. Knowing that, in any start up, it is probably more important who your sponsor is than what company you choose to join. Naturally, if you have a particular passion, like weight loss, you probably won’t be happy selling solar panels online. My point here is simply, if you are just starting up this business, you need strong leadership that will provide training and a system that you can easily and readily implement in your first 90 days.

You would be amazed at how many people sign up in a networking company on a whim. Really! The sponsor has placed an online ad promising a six-figure income in six months; the only requirement is that you be teachable. Of course, there is a small start up cost, and in some cases, an auto ship order of product. If they are lucky, they get to pay for a replicated company website that no search engine notices. How gullible can people be?

What happens next? All those orphaned downline members drop out (who cares? the sponsor has the sign-up bonus already) and more newbies are signing up online to fill in the empty spaces. That, my dear reader, is called CHURNING, and it is the primary reason MLM business is not respected.

The solution to that start up problem is that you must “sponsor shop”. Yes, start searching out companies that attract your interest, then look for Sponsored Links on Google (that means the sponsor is conducting a “pay per click”, or PPC campaign). This is a strong position and usually means they have advertising dollars to spend. This should mean to you, as a start up network marketer that they are probably in profit.

It would be just fine to find that sponsor in the generic top 10-30 on a Google search of the company you are interested in working with. Just go to the site, sign up for information, and I guarantee you will receive a call almost immediately! Now, here is where you must be strong…begin asking questions of your potential sponsor. No! You do not ask “how much money do you make a month?” You want to know how long they have represented Company XYZ, how many other companies have they represented, do they represent more than one company (called multi-income streaming), what is their personal training schedule for new start ups, what marketing skills are they teaching that are unique to this Company? I think you get the picture by now. You are interviewing them. Believe me, only the honest and dedicated sponsor will give you all that and listen to any other questions, or problems, you have in your decision making process. You will, by virtue of the fact that you have a business philosophy that you have chosen, be able to use the attraction marketing cardinal rule called “the consultative approach” to find the company and leadership that is a good fit for you. Lastly, do not believe online testimonies; get their contact information and call them for the endorsement first hand.

Now it is time to “sleep on” perhaps the biggest decision in the start up of your network marketing business. Your future depends on these first two baby steps; discovering your personal business style/values, and the company/leadership that meets those values.

The Right Attitude and Hard Work

By learning the habits of those who have proven network marketing is a true wealth generator, you’ll develop the necessary tools to become wealthy in your own right. Just always know who you are following! You have come to network marketing for your own reasons: more income, stay home and save on gas, flexible hours; whatever your reason…it must be BIG. Always remember that only 3% of network marketing start ups succeed! Your attitude and determination will sustain you during days when you want to drop out. Yes! Those days will come, but you will have a sponsor that is invested in your success, and you will call that person. If you don’t have a peer-peer relationship in your company, or a team to connect up with, get one as soon as possible or start one yourself.

Having the right attitude, sales skills, leadership qualities, and business sense creates the opportunity for achieving your financial goals. Of course, you should also couple these personal qualities with an organized business environment…that is another article…stay tuned.

“Whenever qualities of Sales Persons are discussed, qualities like good communications skills, good interpersonal relationship, and knowledge about their own products vis a vis competitors’, and Market Scenario are mostly talked about. Hard work either does not appear on the list, or given the last priority on the list.” Hard Work – The Most Desired Quality of Sales Professionals, by Mohinder Chugh.

A Network Marketing Start Up is the Business Model of the Future

Network marketing fits every lifestyle, culture, age, and environment. When you understand what it takes to generate network marketing wealth, you can start a new business or get an existing business on course.

This is a “people business”, so don’t get sucked into the “auto-pilot” mentality; or worse, the get rich quick promises. “Due diligence” is the buzz word of this business world.

Network marketing start ups feature a low upfront investment – usually only a few hundred dollars; however, an on-going marketing budget should be set and adhered to meticulously. Don’t spend yourself out of business in those precious first 90 days!

Those that succeed have a persistent and sustainable reason for conducting this type of business. What is yours?

Some of the best known companies in America, including Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella. Younger companies include Arbonne, Healthy Pet Net, and Send Out Cards. Independent network marketing start ups include a hydride of sorts, combining network marketing education with other forms of marketing, such as affiliate marketing, or multi-level pay-out for referring prospects to a particular educational series. Some programs even include prospecting leads for you to contact with their education subscription. This type of general network marketing education, and income, lies outside the individual company training.

The purpose of this article intends to lay down the mental mindset needed for a network marketing start up. Please don’t just buy into a fool-proof system, or sure-fire templates, or the worst of empty promises…a six figure income.

Yes! It is simple…but it is definitely not easy. I hope this helps you get ready for the many choices you will make in this endeavor.

Do Your Best!

Ruth Ann Hall is a mother, grandmother, and nearing retirement age. She was raised on a farm in west central Illinois, but calls Chicago home.

Her personal website: RookieMarketing.com is about her association with Ann Sieg Consulting and using the “consultative approach to marketing.” More information? Yes! Click Here.

Her latest project, this website, is intended to provide information for those looking to make a good decision on working from home.