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3 Main Components of a Good Network Marketing Business

By Patrick Carr of PWCarr Music

There are three important attributes a network marketing business must have in order to be successful.

1) A reputable company which has been in business long enough to prove its stability.

2) A valuable and consumable product to provide residual income for the distributors.

3) A marketing system which funnels interested prospects into the business. This solves the problem of not being able to recruit, the reason most people fail and drop out.

People new to the idea of home business opportunities don't know and don't care about these things. They don't care about the intricacies of the compensation plan, or even how great the product is.

They want to know 3 things:
- Is it simple?
- Does it work?
- Can I do it?

If you can demonstrate that the answer is "yes" to those questions, you will be well on the way to building your business and helping others build theirs.

PLEASE VISIT THE CONTRIBUTOR'S WEBSITE

PWCarr Music
Blues music and musician resources
pwcarrmusic.com

If a company has a marketing system that funnels interested prospects into the business - they don't need anything else.
Be honest - why would they bother sharing their expertise with others if they can have all the prospects for themselves as customers?
MLM works by having thousands of hopefulls working in small localities approaching their friends. neighbours and others in the neighbourhood that the MLM company marketing system can not reach.
It is this cyncal approach which causes so many people to fail at MLM - every time they recruit someone in their locality, they are recruiting their own direct competition.

The marketing system has to funnel prospects into YOUR business, not their business. You need to have interested prospects coming to YOU so you don't have to go around bugging your friends and neighbors.

I have been reading The Unemployed Millionaire: Escape the Rat Race, Fire Your Boss an...' by Matt Morris http://bit.ly/cNE71b and he made it with Network Marketing

Bill Coughlin Apr 2, 2010 09:04

Pat, I'm confused here. (not the first time, nor the last)

Are you saying that those top 3 items in your intel should not be important to people?

I'm saying those items are the most important, but most people new to network marketing don't know that. It seems most people just keep jumping into every new get rich quick scheme that comes along. All those programs disappear within weeks.

Thank you for sharing, Pat. Many people think that internet marketing is building a website and the customers will come. They soon find out that marketing is work and if not done, they will fail.
Best wishes.
Frederick

frederick Apr 2, 2010 15:59

So true... great stuff being shared here, thank you!

LadyD Apr 2, 2010 21:26

"The marketing system has to funnel prospects into YOUR business, not their business."

Again I ask "Why would it?". It simply is not good business sense to set up a sales campaign of any sort if the results and profits are going to be given away and no meaningful statistics regarding effectiveness gathered. If I want to buy products from a few health food companies, for example, I can go direct and get the discount that being a member of their MLM team grants me. The companies NEVER EVER say "You must visit our local representative to buy our product" no matter how brilliant their MLM system is because their own sales efforts have to return a dividend.

Effectively the MLM companies are often in direct competition with their own independent(?) sales teams.

MLM is designed to reach the parts of the market that the sales funnels do not reach - all those people who prefer not to shop online even if they know they can - and the only way to do that is to get people out there pushing the products to friends, neighbours and local people through local advertising.

Hi Arthur,
You are obviously quite knowledgeable and experienced in network marketing.
I would ask, "Why wouldn't it funnel prospects into your business?" Growing your business is growing the business in general, since you and your referrals are using the products and promoting the business opportunity.

Why would you ever want to depend on bugging your friends and family until they hate to see you coming? That is why 97% fail at MLM.

I have, and I'm sure almost everyone else has experienced the frustration of trying to recruit people into a business. If they can join free and do nothing, that's what they will do. Most won't even promote it to get referrals.

The system my current company uses employs a TV infomercial about building a home based business. Interested people call in, and the calls are directed to the members of my team. We direct them to a short presentation that answers all their questions. If they want to sign up, they agree to use the products to qualify to take calls.

That allows everyone to build a large team and residual income in a short amount of time.

It solves the problem of having to try and recruit people, and it solves the problem of having a bunch of deadbeats who join and do nothing.

If you want to push the products to friends and neighbors and advertise locally, there is still nothing to prevent you from doing that, too. It's just not a very effective way of building income.

You would not 'want' to be bugging friends and neighbours but most MLM systems expect this of you.

As for why the business would NOT funnel prospects into your business, let's just think about that. Actually, we don't have to think too long - it will not give you prospects that it has paid money to collect because that is economic insanity.

Does it really make sense that a company would spend on advertising and other publicity simply to hand the results over to some un-proven sales associate? It probably costs the company several hundred dollars to acquire each new customer and that cost has to be recovered. It will be recovered a lot faster if there is no revenue share with an associate (who had absolutely nothing to do with the customer acquisition) and the company is probably better able to retain that customer in the future by superior customer care and other direct marketing efforts.

MLM companies know which market sectors they cannot reach and it is those sectors that most associates are forced to fish in for their customers - non-internet shoppers, house bound, lonely, catalogue shopping adicts and so on.

To be a successful MLMer you have to be willing to put up your own advertising campaigns and spend your own money to get your message across, recruit your own down line, train your own down line and pray that the company you represent does not change the rules as you become more successful.

theoldcoot Apr 16, 2010 02:16

I have been associated with an MLM company for 15 years. I have not been "working" it for the past 13 years but am still reaping the rewards of WORKING HARD for 2 years. I did NOT approach friends and family, they eventually approached me. Very few stayed with the company but we are still friends and family, as it should be.

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