This is the first of a series of articles designed to help anyone who is considering an online MLM or affilliate marketing business. Check back often for updates in this series.
WHY MOST PEOPLE FAIL IN MLM
MLM is an explosive growth opportunity and it is here to stay. Like it or not! Let's review some MLM facts. There appears to be thousands of MLM companies. Some of these are MLM companies, while most of them are not. Many people have become wealthy in MLM, but about 97% of the would be MLM'ers never make it! Therefore, before we go blindly into MLM, let's analyze why 97% of the would be MLM'ers don't survive. Then let's see if we can minimize or eliminate any of these problems. Let's break down the problem in three categories.
1. MLM'ers can't EFFECTIVELY recruit new members.
2. MLM'ers can't keep his program going. It runs out of
gas and dies a natural death.
3. MLM Company has serious problems.
I believe that sums it up. Either the MLM'er can't get his program started, can't keep it going, or the MLM company itself goes "belly up."
WHY NEW MLM'ERS CAN'T EFFECTIVELY
RECRUIT NEW MEMBERS
1. THE MLM PARADOX
According to Webster, the word "paradox" means, "something with seemingly contradictory qualities or phrases." In MLM, there is a paradox that causes major confusion that must be understood and dealt with. Here is the problem. MLM companies by law cannot aggressively "push" the MLM opportunity as the main reason for joining their program. They must emphasize their products and services and explain the MLM opportunity as only a nice extra benefit. If they don't, all kinds of local, state and federal government officials will attack them. Therefore, they must be extremely careful about what their literature, advertising and promotions material states, what they say in meetings, etc. That is why we normally don't mention the MLM company name when we use examples in these reports. We do this just to avoid this kind of problem.
All MLM'ers are aware of the MLM "paradox" problem. Look, everyone knows, including the MLM companies and all the distributors that the real reason most people get involved with MLM is for the opportunity! Yet, the MLM literature and the MLM distributor cannot tell you this directly without crossing over the fine line of being illegal. In other words, it is illegal to promote a MLM company if the sole purpose is to earn profits by signing up new distributors with no regard to the usefulness of the product or service.
Where does this leave the new MLM distributor? Well, no one is officially allowed to tell him how to go out and aggressively recruit new members! Instead, he is always taught how to "promote" the product and then "as an after thought" explain the opportunity! All up standing MLM companies will follow this procedure.
TIP: Keep your lead generating methods separate from your MLM promotions. In other words, it is perfectly legal to promote an opportunity any way you want to as long as you don't tie this directly with a MLM company. That means that you can write your own advertisements, etc. and generate all kinds of leads. But when it comes time to discuss a particular MLM company, then use the official MLM literature, guidelines, etc. when presenting that particular company, products, and opportunities. In that way, you are making a clear distinction between "lead generating" and promoting a particular "MLM company opportunity."
TRICK Use an e-book/newsletter as your lead generating vehicle. That the "back bone" purpose of the e-book/newsletter campaign to generate MLM leads! The e-book/newsletter is not speaking for any particular MLM company. Instead, it provides a method of operating a lead generating "core" business that will pay for itself in qualified leads. When it comes time to "promote" a particular MLM company, let your customers request visit your MLM company(s) web page. If the MLM company you are affiliated with is worth its salt, then it will more than likely have an impressive site that will sell itself.
TRAP Don't attempt to promote and advertise a particular MLM company's opportunity before explaining the product or service. This is in direct conflict with the MLM Company’s guidelines. Instead, find people who have a sincere interest in MLM opportunities, and then direct them your company’s website.
2. MLM CONCEPTS ARE WAY TOO COMPLICATED
When most people are first exposed to their first MLM opportunity, they are over powered by the complexity and newness of MLM concepts and terms. They are confused with all those new terms such as "Network, down line, up line, Organization, Levels, Etc." Then there is the specific MLM plan that is being presented that is always anything but simple. There is too much to absorb quickly.
Then there is much suspicion. Is this a pyramid scheme? Is it legal? They have probably never heard of the MLM Company that adds to the problem. They find it hard to believe that they can really make the kind of money being discussed. They probably suspect the MLM distributor. And on and on. Right? So what happens? In most cases, nothing! They simply don't sign up'!
TIP Sell or give away your e-book or newsletter! That way, your potential candidate has been educated, and most of the initial education problems have been overcome.
TIP Be selective! Don't try to sell your MLM program to everyone. Instead, spend your time selectively by e-mailing or phoning if you like, to only those that have already requested your e-book/newsletter.
3. POTENTIAL MLM MEMBER CAN'T DECIDE WHICH MLM COMPANY
TO JOIN
Put yourself in his shoes. If he has been investigating MLM companies, he is sure to be confused with all those offers and different companies! If he can't decide, he just doesn't sign up with any MLM company! Does he? Well, if you a strong e-book/newsletter package, and you are promoting only to those that have it and read it, you have a very important advantage.
TIP There are literally thousands and thousands of MLM distributors who will jump at the chance to tell you which companies you should get into and promote. If you want more "advice", there are many books written by the "experts." Understand one thing, every book and magazine article that you read and everyone that you talk to will almost assuredly have some sort of "vested interest." In other words, they are either openly or subtlety trying to get you to sign up in their program! They will be quick to explain that there are "golden rules" and guidelines to follow. Some will tell you to stay away from "ground floor" opportunities since they are too risky. Others will explain that this is where the big money is. Some will explain why matrix MLM programs are better than others - and visa versa. Some will adamantly advise you to be active in only one MLM company - "be loyal" is their motto. Others try to sign you up in multiple companies. Still others have put together "Down line Building Teams," and will invite you to join them. They do all the work (You simply send them money). With all this "good" advice, what is correct?
I have noticed one thing about all these "good" advice sources. They never seem to ask me what my goals are. What is it that I want? How in the world can someone give another person advice before he understands what the objectives are? What is it that that you really want? When? How much can you afford to spend? How much risk are you willing to take? What MLM programs and products do you like? Before we even think about selecting a MLM company, let's review the real world about MLM companies and opportunities.
Most new MLM companies never make it through their 2nd year. This is because they are not properly financed, don't really have a good offering, or the federal (FED's) government shuts them down! The reason that the FED's shut down some of these companies is that there is a lot of unscrupulous people in MLM, mail-order and in fact, all kinds of business.
MLM is no different from other companies that frankly have about the same survival length. New companies in any business, MLM or not, have a tough time getting through the first few years. The people that promote MLM companies never seem to get around to explaining the real facts to you. But you need to understand the dark side as well as the "rose colored glasses view." Sound scary? Well, if you were to invest $5,000 to $25,000 like some MLM companies would like you to do, yes it would be scary. The correct word is probably "foolish." Now let's take these facts and see if there is really a low risk, high potential waiting for you.
So, back to the question, "How Do You Select The Right MLM Company?" This is like asking. "What stock should I buy?" Brokers, advisement firms, and the like will be quick to give their advice. Wouldn't they? And why not - they all earn a fat commission or other fees. Do you think any of them really care about you? And if they really believed in their own "advice." why don't they mortgage their homes and buy in themselves? The fact is, "No one knows!" And that is true with MLM companies and buying stocks! A standard solution does exit however: Diversify! Spread your investment around! Why put all your eggs into one basket?
Now all of this doesn't mean that you should select your MLM company(s) with your eyes closed. There are some fundamental rules and guidelines for you to consider.
1. Enroll into at least 2 or 3 MLM programs. This just makes good business sense. There is no guarantee that any MLM program will survive, so let's not be naive about this. Safety is in numbers! Although we have chosen these companies, one could go sour. But they all won't go sour... at least at the same time. And in the
mean time, you should be making money with the one or two companies that you're in.
2.Make your core MLM company one that is at least five years old and is the best one that you can find.
3.Get into MLM companies that you have total confidence in. There is nothing quite as frustrating as trying to promote a product or a company that you don't really believe in. Stick with the winners with a few years of success behind them!
4.If you are interested in hard offline advertising, make sure that the MLM company(s) that you select have inexpensive literature that you can send by mail in a cost effective manner. This just makes good mail-order sense!
TIP Concentrate on your method of lead generating, instead of trying to sell everyone your MLM company. Let the MLM MACHINE do your lead generating and "selling."
TRAP Don't be a "MLM junkie" without a plan. Human nature is to entice you into many different exciting "ground floor" MLM opportunities. These can be fine, but you will lose your shirt if you don't have a coherent plan that makes sense. Work this program and its offering to the fullest before you take off in other directions.
Me And My Best Friend
A Day At The Office!
Wednesday, January 24, 2007
Monday, January 22, 2007
MLM Food For Thought
The idea of using a multi-level marketing program to produce extra income - to attain total financial freedom - has taken North America by storm! More and more people from north to south and from east to west are looking around, and attempting to find a real winner.
The problem is, multi-level marketing companies are sprouting up all over the place, and there's just too many of them to keep up with, for the average extra-income opportunity seeker. This makes the choice of the best one or ones to "hook up with" a frustrating and time-consuming process.
Before you "hook up with" any multi-level company, we advise you to run through this check-list.
Think about the product. Is it a product that you would use regularly, and freely recommend to your friends? Does it have lower-prices? Is it more convenient to use than similar products available elsewhere, particularly at the stores in your area? And finally, what about delivery - How much of a time interval is involved from when your customer orders until he receives the product?
Find out as much about the operation as you possibly can. Beware of chain letters, pyramid scams, and exorbitant claims relative to distributor profits. Be sure to find out exactly what you'll be getting in return for your initial sign-up fee. Make sure the company provides you with professional sales aid materials, and that they're reasonably priced - many MLM companies rake in tremendous profits just selling brochures and/or other sales literature - check with your local printing outlets and determine your actual cost. Find out about the company's financial backing and corporate officers - are they in it as full-time professional sales people. Be sure to understand/know how the company keeps track of all the incoming orders and when, as well as how, you'll be paid.
In essence, before deciding to become involved in a multi-level marketing company and expect to make a profit, it is essential that you understand:
It is a selling proposition - you will be required to do at least some face-to-face selling - and it will require a lot of your time.
You must have a product line that appeals to most people - in other words, information or program/help that will enable people to fulfill their basic wants such as become rich.
Selling vitamins, wrinkle creams, even food, will NOT fulfill those needs because of the intense competition; but, appealing to those people who are already selling a product with a sales improvement or training program can make you rich.
In addition to understanding what's involved, and a product line that most people want, and will buy from you, you need assistance - instructions and help - in not only selling the product or products, but in how to find new customers on an ongoing basis.
Once you've decided to try your hand at multi-level marketing, and you've become affiliated with a company that has a product line you feel will appeal to most people, and you have your advertising/sales materials, the next thing is to determine how YOU want to sell it - will you be selling door-to-door, via home parties, public seminars, by mail, or a combination of all these methods.
Remember, the amount of time you spend in actually trying to sell the product will determine the amount of money you make. The more presentations or sales calls you make, the more money you're going to make - but unless you make those sales calls, you won't be making any money.
It's up to you to decide just how much time you'll spend with your extra-income producing project.
The Pro Profit Team
Pass2Pro@Yahoo.com
www.TBoner1.PayItForward4Profits.com
The problem is, multi-level marketing companies are sprouting up all over the place, and there's just too many of them to keep up with, for the average extra-income opportunity seeker. This makes the choice of the best one or ones to "hook up with" a frustrating and time-consuming process.
Before you "hook up with" any multi-level company, we advise you to run through this check-list.
Think about the product. Is it a product that you would use regularly, and freely recommend to your friends? Does it have lower-prices? Is it more convenient to use than similar products available elsewhere, particularly at the stores in your area? And finally, what about delivery - How much of a time interval is involved from when your customer orders until he receives the product?
Find out as much about the operation as you possibly can. Beware of chain letters, pyramid scams, and exorbitant claims relative to distributor profits. Be sure to find out exactly what you'll be getting in return for your initial sign-up fee. Make sure the company provides you with professional sales aid materials, and that they're reasonably priced - many MLM companies rake in tremendous profits just selling brochures and/or other sales literature - check with your local printing outlets and determine your actual cost. Find out about the company's financial backing and corporate officers - are they in it as full-time professional sales people. Be sure to understand/know how the company keeps track of all the incoming orders and when, as well as how, you'll be paid.
In essence, before deciding to become involved in a multi-level marketing company and expect to make a profit, it is essential that you understand:
It is a selling proposition - you will be required to do at least some face-to-face selling - and it will require a lot of your time.
You must have a product line that appeals to most people - in other words, information or program/help that will enable people to fulfill their basic wants such as become rich.
Selling vitamins, wrinkle creams, even food, will NOT fulfill those needs because of the intense competition; but, appealing to those people who are already selling a product with a sales improvement or training program can make you rich.
In addition to understanding what's involved, and a product line that most people want, and will buy from you, you need assistance - instructions and help - in not only selling the product or products, but in how to find new customers on an ongoing basis.
Once you've decided to try your hand at multi-level marketing, and you've become affiliated with a company that has a product line you feel will appeal to most people, and you have your advertising/sales materials, the next thing is to determine how YOU want to sell it - will you be selling door-to-door, via home parties, public seminars, by mail, or a combination of all these methods.
Remember, the amount of time you spend in actually trying to sell the product will determine the amount of money you make. The more presentations or sales calls you make, the more money you're going to make - but unless you make those sales calls, you won't be making any money.
It's up to you to decide just how much time you'll spend with your extra-income producing project.
The Pro Profit Team
Pass2Pro@Yahoo.com
www.TBoner1.PayItForward4Profits.com
Friday, January 19, 2007
Traffic Exchanges And How To Make Them Work
When I was new to the online business and marketing world, traffic exchanges made no sense to me. It was easy for me to feel as though I was spinning my wheels. I was mindlessly surfing for credits and had no idea of why. I had no concept of how to advertise properly and I became very frustrated when all of my traffic translated to NO new business.
Traffic Exchanges are going to play an important role in your business. For those who are new to internet marketing, this will hopefully clarify what traffic exchanges are, how they are used in your business and how to maximize their effectiveness.
How Traffic Exchanges Works
Traffic Exchanges are website networks whereby members (mostly other business owners) advertise their businesses.
For example: I have a business with a website that I place on a traffic exchange. Once my site is approved by the exchange, it will be placed into rotation along with all of the other sites owned the other members of the exchanges network.
Now what you do is “surf” for exchange credits. Each time you visit another exchange network member’s web page, you earn exchange credits. Each credit you earn often times equal 1 web page exposure. So it you view 100 web pages, at 1 credit per viewing, you will earn 100 exchange credits. That means that the web page you submitted to the exchange network will be viewed by other network members 100 times.
So the more you earn, the more your page is displayed around the network.
Almost all traffic exchange programs are free, although many of them offer special features to paid members and offer credits for purchase. Almost all traffic exchange programs encourage users to build their own referral networks, which would in turn help the referrers accumulate more credits. For example, when a referred member receives credits through browsing, the referrer would get a small portion of the credits earned.
For the most part, traffic exchanges are used by small business owners who want a low cost advertising option. This leads to one flaw of traffic exchanges. Most people who browse these networks are looking only to earn credits for their own business and are not interested in the other businesses that are being advertised.
Keeping in mind your audience, it would be better to target your advertising to business owners. Offer something that will help business owners generate more business; for example, offer and e-book on how to generate targeted traffic to their website. Make sure your heading is eye catching. You want to make that surfer stop and actually read your site.
If the business you are promoting is really good (good product, good business model), then create an ad that speaks to how a business owner can supplement their income by considering your business.
Here are several factors to keep in mind for successful traffic exchange advertising:
•Remember your audience. You are advertising to other businessowners. Make it worth their while.
•Your heading is everything. Make it stand out!
•Exchanges often allow multiple web site submissions. Use them ALL
•Try not to advertise your business directly. Use lead capture pages in connection with an auto responder when possible
•Use multiple exchanges
•Set aside 20 minutes a day to surf for credits.
•Track your hit results.
Traffic exchanges are a great low cost way to advertise your business. If you focus on what is outlined above, you should expect to see a steady rise in traffic and business.
Traffic Exchanges are going to play an important role in your business. For those who are new to internet marketing, this will hopefully clarify what traffic exchanges are, how they are used in your business and how to maximize their effectiveness.
How Traffic Exchanges Works
Traffic Exchanges are website networks whereby members (mostly other business owners) advertise their businesses.
For example: I have a business with a website that I place on a traffic exchange. Once my site is approved by the exchange, it will be placed into rotation along with all of the other sites owned the other members of the exchanges network.
Now what you do is “surf” for exchange credits. Each time you visit another exchange network member’s web page, you earn exchange credits. Each credit you earn often times equal 1 web page exposure. So it you view 100 web pages, at 1 credit per viewing, you will earn 100 exchange credits. That means that the web page you submitted to the exchange network will be viewed by other network members 100 times.
So the more you earn, the more your page is displayed around the network.
Almost all traffic exchange programs are free, although many of them offer special features to paid members and offer credits for purchase. Almost all traffic exchange programs encourage users to build their own referral networks, which would in turn help the referrers accumulate more credits. For example, when a referred member receives credits through browsing, the referrer would get a small portion of the credits earned.
For the most part, traffic exchanges are used by small business owners who want a low cost advertising option. This leads to one flaw of traffic exchanges. Most people who browse these networks are looking only to earn credits for their own business and are not interested in the other businesses that are being advertised.
Keeping in mind your audience, it would be better to target your advertising to business owners. Offer something that will help business owners generate more business; for example, offer and e-book on how to generate targeted traffic to their website. Make sure your heading is eye catching. You want to make that surfer stop and actually read your site.
If the business you are promoting is really good (good product, good business model), then create an ad that speaks to how a business owner can supplement their income by considering your business.
Here are several factors to keep in mind for successful traffic exchange advertising:
•Remember your audience. You are advertising to other businessowners. Make it worth their while.
•Your heading is everything. Make it stand out!
•Exchanges often allow multiple web site submissions. Use them ALL
•Try not to advertise your business directly. Use lead capture pages in connection with an auto responder when possible
•Use multiple exchanges
•Set aside 20 minutes a day to surf for credits.
•Track your hit results.
Traffic exchanges are a great low cost way to advertise your business. If you focus on what is outlined above, you should expect to see a steady rise in traffic and business.
Tuesday, January 16, 2007
What is your Primary Focus as an MLM or Affiliate Business Owner?
There are a lot of people who are getting involved in the home based business industry. There are thousands of companies out there that offer everything from educational products to juices. There is still, other of companies that offer an affiliate relationship whereby you get the right to market someone’s company and in return for a commission on all the sales that come from your marketing efforts.
These companies have their own way of explaining how and why their particular company is the latest and greatest. Some have elaborate presentations that are designed to get you excited about the opportunity that you are exploring. I find, though, that there are few companies out there that really explain what your job truly is as a mlm or affiliate business owner.
Let’s say, for a moment that you have found an opportunity that speaks to you. You sign up and get access to your own back office and website. You are very excited because you really are proud of the company that you represent. You’re ready to hit the ground running!
What do you think your job is now that you are all set up?
Many people believe that their job is to simply promote the business to as many people as possible. While the above statement is true, it is my contention that directly promoting your business or affiliate program is a secondary task. Your primary focus should be collecting the contact information of willing prospects that you will continually market to.
Here’s what I mean:
If you have unlimited sources of money, then directly promoting your business is not going to be a problem for you. All you have to do is flood your market with your advertising everyday, all day and night through all advertising mediums. You will develop brand recognition fairly quickly and if you have a great product, the rest will be history. But if you have limited funds, as many do initially, then you will have to shift your focus from promoting your business directly to building a list of willing prospects (those who’ve contacted you) or leads; as they are often times referred to in the mlm world.
What this means is you will have to devise ways to get people to come to you. Here’s an example: In my real estate business I needed clients. Sticking my face in the newspaper with every other realtor in my area was not going to do me any good. I was just one of many. What I did was offer a free first time homebuyer seminar. I rented a space and placed one ad in the news paper. I also hand delivered flyers to every apartment building in the area where the seminar was to be held. I had a raffle and gave away a free breakfast for 2 at a local restaurant and, of course, gave them great information on the home buying process and how they could best position themselves to buy a great home. At the event, there was standing room only!! The turnout was amazing. As people arrived, I had them sign in with all of their contact information. I then would periodically send them info on the local real estate market and offer them free resources to assist them in buying a home if they were still interested.
From that seminar, I collected 6 new clients who all purchased a house or condo. Of the six, 2 of them referred a friend to me who also ended up purchasing a home. So by not advertising my business as a realtor I closed 8 deals for a total of $70,000 dollars in commissions. I still advertise to the other 50 or so people who attended the seminar. And I know that they appreciate my contact because I still get response e-mails from many of them.
The lesson here is this: You may think that your product or service is the “Bees Knees” and just showing people what you’re selling is enough to make them want to purchase or sign up. The fact is, you have to build a relationship with people by either spending a lot of money and flood your market with your advertising or by building a list of leads that you can personally follow up with over time.
If you don’t have an unlimited source of funds then don’t waste your time advertising your business or product and how great it is. No one cares and most will think you are trying to scam them out of something. Instead, spend all of you energy in creating a system that will help build list of willing participants automatically. Once you have a substantial list and you have created a relationship with the members of that list, THEN you can start to promote your opportunity or product. That is your job as an mlm business owner. Without this list, you will have a hard time building your business and income.
Coming up next building a relationship with your prospects through the use of your auto responder.
These companies have their own way of explaining how and why their particular company is the latest and greatest. Some have elaborate presentations that are designed to get you excited about the opportunity that you are exploring. I find, though, that there are few companies out there that really explain what your job truly is as a mlm or affiliate business owner.
Let’s say, for a moment that you have found an opportunity that speaks to you. You sign up and get access to your own back office and website. You are very excited because you really are proud of the company that you represent. You’re ready to hit the ground running!
What do you think your job is now that you are all set up?
Many people believe that their job is to simply promote the business to as many people as possible. While the above statement is true, it is my contention that directly promoting your business or affiliate program is a secondary task. Your primary focus should be collecting the contact information of willing prospects that you will continually market to.
Here’s what I mean:
If you have unlimited sources of money, then directly promoting your business is not going to be a problem for you. All you have to do is flood your market with your advertising everyday, all day and night through all advertising mediums. You will develop brand recognition fairly quickly and if you have a great product, the rest will be history. But if you have limited funds, as many do initially, then you will have to shift your focus from promoting your business directly to building a list of willing prospects (those who’ve contacted you) or leads; as they are often times referred to in the mlm world.
What this means is you will have to devise ways to get people to come to you. Here’s an example: In my real estate business I needed clients. Sticking my face in the newspaper with every other realtor in my area was not going to do me any good. I was just one of many. What I did was offer a free first time homebuyer seminar. I rented a space and placed one ad in the news paper. I also hand delivered flyers to every apartment building in the area where the seminar was to be held. I had a raffle and gave away a free breakfast for 2 at a local restaurant and, of course, gave them great information on the home buying process and how they could best position themselves to buy a great home. At the event, there was standing room only!! The turnout was amazing. As people arrived, I had them sign in with all of their contact information. I then would periodically send them info on the local real estate market and offer them free resources to assist them in buying a home if they were still interested.
From that seminar, I collected 6 new clients who all purchased a house or condo. Of the six, 2 of them referred a friend to me who also ended up purchasing a home. So by not advertising my business as a realtor I closed 8 deals for a total of $70,000 dollars in commissions. I still advertise to the other 50 or so people who attended the seminar. And I know that they appreciate my contact because I still get response e-mails from many of them.
The lesson here is this: You may think that your product or service is the “Bees Knees” and just showing people what you’re selling is enough to make them want to purchase or sign up. The fact is, you have to build a relationship with people by either spending a lot of money and flood your market with your advertising or by building a list of leads that you can personally follow up with over time.
If you don’t have an unlimited source of funds then don’t waste your time advertising your business or product and how great it is. No one cares and most will think you are trying to scam them out of something. Instead, spend all of you energy in creating a system that will help build list of willing participants automatically. Once you have a substantial list and you have created a relationship with the members of that list, THEN you can start to promote your opportunity or product. That is your job as an mlm business owner. Without this list, you will have a hard time building your business and income.
Coming up next building a relationship with your prospects through the use of your auto responder.
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