Multi-level marketing, or MLM, is a business model made up of salespeople who are not salaried. These salespeople sell products or services for the company while recruiting participants to also sell for the company. The two forms of revenue in this type of business are a commission from sales you make directly to customers, and commissions from those recruited by you. Due to the incentives, MLM companies motivate their sales force to go out and recruit as well as sell the product. These companies do not use the media to advertise; instead, they opt for direct sales and referrals. These non-traditional businesses can be tricky, but here are 9 tips on how to build your MLM.
1. This is a Business
While multi-level marketing is a non-traditional business, hard work is still necessary. You must decide how much time you are going to put into your work. People are attracted to the potential to make a sizable income in less time but there is still a fair amount of hard work involved. This is a business, not a hobby.
Another key aspect of any successful business is an investment. You have to spend money to make money. In this form of business investing in tools and resources to aid your sales can be deeply beneficial.
2. Be Genuine
MLM sometimes gets a bad rap by being overhyped to gain new recruits. Legitimate MLM companies do not support this behavior. Instead, be honest with customers and potential recruits about the company and products you are selling. Do not exaggerate and be open about your product. Believing in what you’re selling helps.
3. Research the Company
There are many scams or pyramid schemes out there that are disguised as multi-level marketing companies. In order to avoid these, thorough research is necessary. Determine you are a good match with this company and that they are selling a product you love. It is much easier to be honest when you actually have pride in what you are selling. Check that the products are competitively priced and be wary of gimmicks.
A quick Google search of the company will reveal any complaints against the company. Other people’s experiences can be very telling about what yours will be like. Find out how long the company has been in business, positive customer satisfaction, what type of hype the company has, and any legal cases against the company. A little bit of research can save you time and money.
It can be very easy to get excited about the money to be made but do not jump into anything without fully thinking it through. Before committing, check the company’s compensation plan to make sure it is favorable to you. Ask what your potential expenses would be. Get the contact information for someone who can answer these questions as well as support for the claims of how much money could be made.
4. Identify Your Ideal Market
Not everyone is going to be a customer. Therefore, you should not just pitch to anyone and everyone you know. Focusing your energy on someone who is already interested in your product will help ensure greater success in your business. This will also help you avoid annoying family and friends by trying to sell to them. They may be interested in what you are doing and there is nothing wrong with letting them know, but take no as an answer and do not continue to pester them. Success will come by focusing on those who are interested in what you have to offer.
5. Take Steps to Share Your Product Every day
Your success comes from sharing your products with people. Getting people on board with the products you love may lead to recruits. That being said, always be prepared to share your products with people.
Always carry brochures or any other necessary aids to share with potential customers. Be in the mindset to share your products whenever you go out. You never know when there will be an opportunity. Daily work will lead to growth in your business.
A big difference in MLM is the lack of traditional marketing. These companies do not rely on ads in the newspaper or on TV, so you will have to be your own marketer. Your business strongly relies on word of mouth, meaning that actions should be taken to spread the word about your business.
Besides setting up meetings with potential customers you should also be utilizing other methods of self-marketing. You can host a party, start a website, or create a social media account advertising your business. Always consider your target audience when deciding which marketing tools will create the most success.
Your business relies on retaining customers as well as recruiting new members. Taking a look at your compensation plan will help you set your goals of how many people you need to reach in order to grow your company.
8. Following Up
Following up on sales is very important. While they may say no at first that does not mean that it is forever. Timing is very important in sales. Certain words may indicate that there is a potential sale in the future. If this is the case, ask if you can place them on a follow-up list where they will be contacted in the future by phone or email. You do not want to annoy them but waiting an ample amount of time to follow up may lead to sales.
9. Be Enthusiastic
Enthusiasm is contagious. If you are not excited about what you are doing and what you are selling then don’t expect anyone else to be. Being positive and enthusiastic will draw people to you and help create buzz around what you are doing.
Once you have decided to go down this road, put your whole heart into it. Take the steps necessary and you will watch your business grow. Dream big and take the initiative to grow them daily.