Network Marketing utilizes leverage and a team approach so anyone can start and succeed in a business. Find out how you can earn income while you help others increase their income.
There are many types of compensation plans used for businesses of this type. All resemble Corporate America with the most amount of commission going to the person making the sale and a smaller amount going to those who hired or recruited the sales person.
MLM, which is an acronym for Multi-level Marketing, utilizes leverage and a team approach. This is a business model that has some very unique characteristics. The worst part is that when you make a sale you share your profit with your upline. The best part is that your downline shares their profit with you. In addition, most companies have several ways for you to be paid which includes Direct Sales to your customers.
What is an upline in Network Marketing?
Each person has an upline, those people who help people get started which includes usually the person who sponsored you and the person who sponsored them, etc. right "up the line". Your sponsor and the other people in your upline ideally coach new, as well as seasoned people, to success. So, when you start your MLM business you can work directly with your sponsor or go upline until you find the most successful person you can who will get you up and running. Sometimes your sponsor may have only started 10 minutes before you, so you are working together to learn. MLM companies value working as teams which, when utilized, can be very lucrative for everyone.
What is a downline in Network Marketing?
In a Multi-level Marketing Business you are usually paid for your direct sales, but you will also earn a percentage of the profit of those people who you sponsor into the business. These people, and the people who they sponsor, and the people who they sponsor, and so on down the line is called your Downline. It is therefore critical that you do not depend on anyone to help, train, and develop leaders in your organization, your downline. Yes, there may be help, and the company leaders most likely will provide help, but develop your own leadership abilities and be the leader you would like to follow. Again, it is Your Business.
1. Plug into the training system the company has to offer.
Unfortunately many people start a business thinking they are going to get rich without doing much and other people are going to do a lot of that for them. Many presentations from Network Marketing companies actually do give that impression and people starting have an unrealistic picture of what they need to do and how the whole thing works. Take the time to learn what you need to learn and learn about the products from the company and how the business works from those who are already making the money in the company.
2. It is YOUR business! Treat it as a business, not a hobby.
Before you start, understand that you are responsible for your success or failure in your business. It's important to be coachable, but you do need to go to work and be self-reliant. There is a myth that the ones who get in first are the ones who make all of the money. I guess that could be true in some cases, but be aware that the ones who got in first worked harder than anyone else and they blazed the trail. All of the systems that are available for the new distributors, representatives, consultants, or associates now, were not in place when the first people got started. Many others were not willing to put in the time, money, and work and they quit. The ones now making the most money had to make their businesses work by being self-reliant. They made sure all of those great conference calls, literature, etc. were put in place and are now available for new people. However, when a new person comes along who is coachable, willing to "roll up their sleeves and go to work", they usually can make the same money or more.
3. Continue with your own personal development.
There is a fine balance between Mindset and Work Ethic in developing a successful business. When you spend time and money developing your mindset, vision, goals, etc. you will be far more successful than if you just take lots of action, but don't know where you are going. This will also keep you from falling into the trap of blaming your sponsor, the company, your spouse, the dog, or anyone else.
Network Marketing companies usually deliver high-end products and services and are in many different industries.
To view actual companies who provide a business opportunity for the average entrepreneur,
Click Here to view Business Opportunities in Network Marketing.