Beginner's Guide to Network Marketing (MLM)
Summary:
Network
Marketing, also called MLM (multi-level marketing) can be very profitable, but
don't be fooled by claims that it is easy to earn money with little effort.
Read this short guide to network marketing / MLM and decide if this is the
business for you.
Keywords:
network
marketing, MLM, home business ideas
Article Body:
Network
Marketing, also called MLM (multi-level marketing) can be very profitable. Many
companies operate in this way, for example, Amway, Kleeneze, and the Body
Shop.
The main requirement for this business is to be good at selling. Don't despair
if you're a shy wallflower as selling is a skill that can be learned, and in
most network marketing companies you should be provided with plenty of training
materials and help.
When you join a network marketing company there are two ways of earning money.
Firstly, by selling the company's products to the customer, you would then
receive a percentage of the products you sell. Secondly, you can also recruit
other sales agents while continuing to sell the products yourself. You would
then receive a commission for every sale your agents make.
Although this is a profitable way to earn money, don't be fooled by claims that
it is easy to earn money with little effort.
It can be possible to get into a position whereby you build a large network of
sellers, who provide you with an income with their efforts, but you have to put
in the work and it doesn't happen overnight.
If you are good at selling and are prepared to put in the work then this could
be a very good way of making money.
There are a wide range of products available to make money. Choose a company
whose products you like and perhaps would buy yourself, as this will make it
much easier to sell.
Also, make sure there are not too many agents for the company in the area you
would like to work. This would make it difficult to sell a reasonable
amount.
Try to find a proactive, experienced, and helpful agent when deciding on which
company to join. They will be the ones providing you with the most training and
advice. Some agents provide regular training sessions and online forums to help
and encourage each other.
Request information from several people or companies before making a
decision.
You don't need any qualifications to join. You will be trained by the company
you join to sell the product you choose.
Once you have chosen the company you wish to sell for, you will need to
purchase their basic kit - this can be as little as a short training guide and
some catalogs, to a package of products, stationery, catalogs, and training
materials. You should not be required to buy the products yourself to sell.
It is common, however, to be expected to pay for some samples of the products at
up to £100 ($200).
It is then up to you to make contacts to sell the products. You can sell
through friends and their friends, work colleagues, special events, schools
(check first), holding a party, or anywhere you can leave a catalog in their
business or office.
To work in network marketing you will need energy and resilience and a tough
skin to cope with the many rejections!
At the start, you may only be making a small amount, but successful people with
a big network can make £100,000 ($200,000).
However, this is not common and the average earnings are around £5,000 ($10,000)
a year.
Pros
If you are comfortable with selling and have or can make contacts you could
persuade to sell to, you can make good money.
Good way of meeting people.
Flexible working hours.
Help, training, and encouragement from your upline (the person that you joined
the networking company through)
Ready-made business
Cons
A lot of time and effort required.
Could lose friends if you try too hard to sell products to them or try to make
them become agents too.
Start-up costs (although usually relatively low - less than £100 or $200)
Must be good at selling, or be willing to learn how to sell.
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