Multilevel Network Marketing
68Can Multilevel Network Marketing Be A Real Business?
Ultimately, every endeavor including multilevel network marketing can be a real business if treated as such. Conversely, even a bricks and mortar retail with employees may not be a real business if it is not treated so. After all, most business fail in the first few years.
Therefore, answering the question if multilevel network marketing (MLM) opportunities are real business opportunities depends on how it is treated. If one gets in the business and then quickly does nothing because they did not get rich shortly after signing up, did not know how a business behaves. Essentially, they bought a relatively expensive lottery ticket. Most business take two to five years to be profitable. Some investors when buying a business expect to make their money in five years, and only then they start to see a profit.
But those who work at it day in and day out, tracking expenses and profit, and see continued incremental growth are in a business.
MLM Hype
Overcoming the multilevel network marketing hype that brought one into the business in the first place is hard to displace. Imagine if I was going to pitch you in becoming Wal-Mart. "You buy household products and resell them at a 30% mark-up. The big dollars come in volume." Just doesn't get the average person's juices flowing. Instead, we hear "if you get three people and each of those people get three people…" Then everyone is told about how much money can be made. After that everyone ceases to listen to anything else, or pay attention to something like what product (or service) is being sold. People just focus on getting three and then those getting three, etc. A entrepreneur would be focusing on the margin and the market of the products or services being sold.
Selling The Wrong Thing
Because network marketers are sold on making money, that is what they sell others. Little is said about the product or service that is suppose to be driving the business. Yet, this is what would make multilevel network marketing a true business- products or services. Selling dreams of riches is usually what most network marketers wind up selling though. Then when their own dreams do not manifest and neither do those of friends and relatives they brought into the business, they all quit. Forget lasting years before failure, they quit within months or even weeks.
Business is tough in any form.
Successful MLM'ers
Those I have found (actually know) most successful in multilevel network marketing all have a heavy focus on the product or service they are selling. Some I have never heard them speak about the money making opportunity, but only about their great products/services. The others I know focus heavily on selling the product or service because they have asked me for referrals. Now, I am not passing on friends, relatives, or business associates for a network marketing opportunity. But I would gladly be the proud networker for a quality product or service, and have provided such leads.
Ultimately, multilevel network marketing should be considered a "real business" if worked diligently and observed honestly. No business will explode overnight every time, most don't. Most take a steady slope upward and take consistent work. I am not one who says a business needs a bricks and mortar location, nor does it need employees, both unnecessary expenses many businesses choose to take on only because the owner thinks this makes them legitimate. So, from that perspective network marketing is a good choice because it actually opposes such stereotypes.
However, multilevel network marketing has a poor history with realistic expectations. Business already comes with rose colored glasses, but multilevel network marketing comes with an entire upline selling the dream. MLM rarely comes with an entire upline teaching you how to sell a product or service, because they don't know how. They only know how to draw circles, but being masters of their product or service they are not. And to be an entrepreneur that is what you must become- a master of your product or service. That is why people will choose to do business with you, continue to do business with you, and will refer others to you is because you know your "stuff." Not because you can draw circles.
When To Build A Downline
So, when does the magic happen? Say you chose to be in an multilevel network marketing because you will have all these people who have gotten three people, and they got three people. When does that happen? That happens in two forms, first as you are out working your product or service your best clients may be interested. Notice Customer A makes an unusually large buy, and you find out she is buying to give to relatives or friends. This is a very good prospect to approach for your network marketing opportunity. Already uses and knows the product, willing to share it with others, if nothing else she gets to buy at a discount, right? The second form of building a strong downline is to work your business in two parts, the selling of a product or service (revenue) and then make a strong distinction of working to build a downline (investment). This way you are assured to be making money while also pursuing the dream.
But make clear lines between product/service and downline building, like maybe 8 to 5 you work the product or service and then evenings you work downline. Or maybe you only have evenings available, you work downline only on the nights you have an open meeting. The other nights are at demonstrations, phones calls, other efforts. Then be sure to keep track of the money, you are in business right? Numbers will tell you when you made a profit, how much each downline is worth, what products are bringing you profit, etc. Numbers will show you the best paths to take for maximum profit.
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