The birth of the Internet has led to many revolutionary changes and has even fostered a flourishing industry, the infamous dot com industry. however, it has also caused the downfall of many when the dot-com bubble burst.
More and more businesses have expanded to the Internet, and it’s no surprise that network marketing businesses are also looking to operate online. Simply put, network marketing is basically a new business model that bypasses the middleman in the distribution chain where cost savings go to distributors and/or customers.
In addition, existing distributors can sponsor others to help them, operating in a similar fashion to franchises, thus earning the term “human franchise.”
One big question still remains.
“Can you achieve a perfect synergy between the Internet and Network Marketing?”
Judging by the above examples of Ebay, Amazon.com, and other online businesses, there seems to be great potential for a home-based network marketing business on the Internet. There are already countless business opportunities online, many applying systems or compensation plans based on conventional network marketing.
“How can one be a successful network marketer online? Is it possible to build an active organization online that will give you residual income?”
This article will not delve into the intricacies of online networking, however, a 4-step guide to running a multi-level marketing (MLM) business online will be provided to give beginners a general idea on how to build a successful home . Business based on Network Marketing.
Step 1 – Go Out and Start Recruiting
MLM is also known as network marketing and for a very good reason. To be successful in the network marketing industry, one has to “connect with people” and “market products or services.” This is also the reason why network marketing is also called word of mouth marketing or viral marketing. The bottom line is that you need to go out and sponsor like-minded people into your organization, whether they are stay-at-home moms looking to earn an extra income or people looking to achieve financial freedom.
Why?
And the answer is leverage.
What is leverage?
Perhaps a simple illustration will give you an idea. Think of Bill Gates. While he sleeps, the other half of the globe is working for him. How is this possible? This is because Bill Gates receives royalties for every sale of a Microsoft product, and the products are sold all over the world. Bill Gates does not need to physically sell his products; instead, he has others do it for him and receives a small share of the sale.
The same effect occurs when you recruit or sponsor someone into your network marketing business. From the moment you sponsor your first person, you have gained leverage. This is because you now have 48 hours to work instead of 24 hours when you work alone.
Leverage is exponential. After you have sponsored your first person, this person will also want to expand their organization by sponsoring others who are also part of their organization.
Using some arbitrary numbers, you can see the exponential effect for yourself. You should also aim to sponsor “business associates” and not “employees”. It is important to have the right mindset that network marketing is not a job but a business, so one should not evaluate it as one would evaluate a normal job.
In the network marketing industry, the people you have sponsored are called your “downlines” and you are their “upline.” Network marketing is a people business, trying to go it alone, superstar salesman style will defeat the purpose of the business model. Do it smart by duplicating more of yourself to increase your earning potential.
Step 2: Monitor your organization’s sales volume
As more and more people become part of your organization, it’s important to keep track of your individual sales record, as well as sales volume statistics for the organization as a whole. Operating a home based network marketing business online provides some advantages in this case as many online network marketing companies provide their members with an online portal where they can view their sales volume at any time.
Tracking the personal sales volume of each individual in your organization will allow you to identify who is having problems so that you can focus your efforts on them. It also allows you to identify potential high-level flyers that you can turn into future leaders in your organization.
Step 3: Monitor your inventory
Once you have completed step 2, step 3 becomes natural as it is important to ensure a constant supply of products to the customer to ensure customer satisfaction. Always anticipate the level of demand for the month and stock enough products to avoid delays in meeting demand. If your products are electronic, you will not have to worry about the lack of supply of products.
Step 4: Train members of your organization
Network marketing is a business of people helping people. You can’t be successful if your downlines aren’t successful. So it’s important to make sure your downlines are as good or better than you are. A newcomer to the network marketing industry will usually face obstacles in its early stages and it is vital that you are mentored to get through this initial stage.
Important knowledge such as network marketing know-how, sales techniques, communication skills, and the art of speaking are all important to a network marketer. A newcomer would not be able to obtain the necessary skill set to succeed in the shortest amount of time without a mentor to support them.
Therefore, it is important that you, as an upline, pass down as many of the skills and techniques that have made you successful as possible to your downlines. This process is called duplication. You are actually creating more “you” to increase your earning potential. A superstar salesperson can earn $6k a month, doubling this superstar salesperson will double the monthly income to $12k and so on.
Training must be progressive and consistent. The bottom line is grooming each of your downlines to become future leaders in your organization, so you can enjoy financial freedom by earning great passive income when your organization goes on “autopilot.” In addition, it is also important to update so that the entire organization learns and improves together.
All things considered, network marketing works on relationships and is a people business. It is important to learn how to help others in this business. Now that you have a general idea on how to start your own network marketing business.
It’s time to take action! As Brian Tracy has said, “Setting goals and having ambitions and dreams is nothing without action.”
So, get started today and take another step towards financial freedom!