Network marketing has been on the rise in recent times. Virtually any product or service that can be bought and sold is marketed through the MLM business model. Although the industry often touts itself as the solution to financial prosperity for all, the truth is that many MLMs don’t last long and many distributors have seen their dreams of financial freedom dashed due to the failure of the MLM company they started. They had. pin all your hopes.
While it’s true that many MLM companies don’t make it, the fact is that there are also many network marketing companies that have stood the test of time.
This article examines the 7 critical cardinal factors necessary for a successful network marketing company. My observation and research confirm that most successful MLM businesses have all 7 ingredients in their business operations, while those that have failed lack some or all of the critical requirements.
It is important that you review your MLM opportunity for these cardinal and structural requirements before investing a lot of emotion and time in the venture..
#1. A good MLM should have a great replicated site with a lead capture page designed specifically for your network marketing company.
This is a non-negotiable ingredient of all successful MLM companies. In the new competitive market, if your business opportunity doesn’t provide a replicated site that has a lead capture page with an effective autoresponder service, it probably won’t be around for long. Gone are the days when dealers had to go find and buy these tools. This needs to be part of what the company offers from the start or you may not have a chance to compete in the future.
#2. A good MLM must have free report or brochure designed for your network marketing business opportunity
This report or brochure should explain the features and benefits of joining your MLM opportunity. You should focus on the support and resources available for recruiting new distributors; explain the company’s Products and the Compensation Plan Report/Brochure should include testimonials from successful people in the company.
#3. The system of a good MLM company must have AN EMAIL FOLLOW-UP SYSTEM
The truth is, most people don’t take action immediately after they’ve chosen to review your opportunity or report. Most people need to see a marketing message at least 7 times before taking any action. Therefore, a good MLM company should have a follow-up system for autoresponder emails that continually market to your leads for you. These emails should be professionally worded and contain strongly worded sales copy.
The company’s Lead Capture page will direct them to the autoresponder which will then start sending the prospect carefully worded follow-up emails on a scheduled basis without your having to do a thing. This has become a staple of every successful network marketing business of late.
#4. A good company must have a continuous feedback system that uses the fear of loss
Research shows that more people buy out of fear of losing than out of the chance of winning. The system of a good company Causes the fear in prospects that they can lose the commission of a new prospect forever if they do not update. It also shows them that there are negative financial consequences if they don’t take action now. This Fear Of Loss concept should be an integral part of the email tracking system.
#5. Your company must have a good product or service that people really want.
While people join MLM because they dream of making money, the Product still has to be good to sustain the business in the long run. You must have a useful purpose that satisfies genuine demand and you must be able to sell even if there is no compensation plan attached.
In fact, if your MLM does not have this particular ingredient, there is a 100% chance that the government will determine that it is a pyramid scheme. The product itself must be good value for money and distributors must be able to enjoy it even if they are not yet earning significant revenue.
#6. A good MLM company should provide strong support to its distributors.
Many people have the enthusiasm to make money with MLMs, but lack the proper training. A good company should be able to provide training and support on a regular basis.
Many people who join Network Marketing these days are inexperienced and come with unrealistic expectations of financial riches. They need to be trained and redirected on how to make this happen by their uplines and the company.
The most successful MLMs now have a strong training site and have very active leaders involved in training.
#7. A good company should have an excellent compensation package.
Many people are looking to generate additional income and fast. A good MLM should provide opportunities for both big leaders and small distributors to make quick money. Compensation must not only be simple for the common person to calculate, but it must also be easily achievable.
In these days of massive promotions by many MLMs in the exploding internet market, people need to see and touch some compensation quickly before staying with any company for more than 2 months. If your company’s compensation plan doesn’t have a meaningful fast start bonus, it’s likely that distributors won’t be attracted to it in the long run and you’ll fail. People are no longer buying in the future for more than 3 months before they start to see money.
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