25 Jan 2015

Making Money Online As A Network Marketer


In the last article, I introduced you to the world of network marketing, MLMs and how very easily they can be confused for, or become pyramid schemes.

Two of the best books I have read on network marketing are Robert Kiyosaki's 'The Business School; For People Who Like Helping People', and Michael Dlouhy's free ebook 'Success in 10 steps' which you can get for free after signing up for it at Mentoringforfree.com.

MLMs, as I explained in the last article, are not meant for everybody, though the lure is to get as many people in under you as possible. And this is what makes it quickly cross the line into resembling or becoming another ponzi scam- hoodwinking people into believing they can get-rich-quick from marketing the program's products or services, and recruiting others aggressively.

Personally, I am a fan of network marketing because I have some ideas I intend promoting with multilevel marketing- I have designed my own Network Marketing program already. But I already know that there is a limit to the number of people you can add under you even if the whole world joins, so I ensured that my product-idea has other advantages to it apart from the network marketing strategy I intend driving it with. I also made a provision whereby you can still benefit maximally from the program without necessarily adding people under you. And this is what I believe genuine network marketing programs should be built on/around.

Allow me to start with this quote from Michael Dlouhy: MLM is a relationship business. It's not a sales business. It is not direct marketing. It's you and me working together to create an effect much greater than the sum of the parts.

Let me share with you some tips on becoming a super network marketer from the two books above and then end with how you can make money from joining a MLM program (such as SFI) online in order to make cool money.

On how he got into the network  marketing business, Michael Dlouhy tells of a man who walked up to him one faithful day and said to him,

"The fact is, YOU have done network marketing, word-of-mouth advertising, every day, since about age 5. You told your mom & dad what sneakers you wanted, your favorite cereal, shirts, baseball gloves, books, movies, restaurants, all kinds of things. You’ve been promoting since about age 5. But you’ve never gotten paid for it. "With my company, you get to pick up that check.”

Why MLM?
Kiyosaki says there are 11 different ways to be rich
  1. You can become rich by marrying someone for his/her money
  2. You can become rich by being a crook
  3. You can become rich by being greedy
  4. You can become rich by being cheap or frugal
  5. You can become rich via hardwork
  6. You can become rich by being exceptionally smart, talented, attractive or gifted, e.g. athletes, actors and other celebrities.
  7. You can become rich by being lucky or winning the lottery
  8. You can become rich by investing
  9. You can become rich by inheriting money
  10. You can become rich by building a business from scratch
  11. You can build a network marketing business: In explaining this method of attaining wealth, he argues that it is a revolutionary new way of ‘sharing wealth with anyone who truly wants to acquire great wealth’.

He calls MLM a democratic way of wealth creation, open to anyone who has drive, determination and perseverance.

A good network marketing company cares primarily about how much you are willing to learn to change and to grow, and whether you have the guts to stick it out through thick and thin while you learn to be a business owner. And not just about how many people you bring or how much products you buy or sell.

Types of businesses you can market with MLM
  1. Cosmetics, Skin care and other beauty products
  2. Healthcare products, vitamins and other wellness related products and services. (Check out mlmwatch.org for latest info on this category, especially in North America)
  3. Telephone services
  4. Real estate services
  5. Insurance/financial/mutual funds/credit cards services
  6. Legal services
  7. Internet market distribution, selling cataloged products at a discount, ebooks
  8. Jewelry
  9. Tax services
  10. Educational toys and games, or children materials
Tips on knowing whether a network marketing company will help you achieve your dreams
  1. They have a system -an educational plan- in place to mentor and teach new recruits. In other words, they truly care about training and educating you.
  2. Their compensation plan works for 97% of the population, and not just the 3% who are at the top.
  3. They are primarily people and relationship-oriented, and not product/services-oriented.


Tips on choosing the right company with the right compensation plan

Avoid any compensation plan that:
  1. Limits your strategy to place personally sponsored people where you want.
  2. Forces you to go wide.
  3. Doesn't reward you for building deep.
  4. Won't work for average part-timers.
Colour your way to success
Michael says people are either of four colours:
  1. Yellow; Yellows make up 35% of the population. They are nurses, schoolteachers, UN workers … the nurturers. They give from the heart. They don't have time for themselves, because they give to everybody. When you talk with a Yellow, become a Yellow. Slow the pace. Contain your excitement. Lower the volume. Yellows see excitement as hype, you trying to sell them. Don’t tell a Yellow about making $10,000 a month, because they’ll turn right off.
  2. Blue; A BLUE “just wanna have fun.” They're 15% of the population. They're always in a sales business of some kind. They jump from program to program to program, looking for fun. These are the planet’s most creative people. A Blue sees the big picture instantly. They don't need or want all the details. Blues can eat an elephant, but not at one meal.
  3. GreenGreens are 35% of the population. They're the analytical people. They analyze it to death. They've missed millions of dollars in opportunities because they analyzed it too long.
    Greens believe they're the smartest people on the planet. With a Green, in 2-3 minutes, you'll know you have a Green. They want ALL the details. You are NOT going to sell them. Don’t even try. They have to sell themselves. They'll go to the web site, they'll listen to the conference call. Then they'll go to the next website and the next link. If you have 27 links on your website, they'll go to each one. They'll read all the testimonials, all the articles, etc.
  4. Red; Reds are 15% of the population. They are money-motivated, money-focused. Don't bother talking to them about your family or your vacation. They don't care. They know if you get married, you're supposed to have kids. If you have kids, you're supposed to go on vacation. End of story. Don't want to talk about it. They are the CEOs, natural leaders and they are motivated by the drive to achieve and make money.
Important real-life business skills and topics a good MLM company should teach
  1. An attitude of success
  2. Leadership skills
  3. Communication skills
  4. People skills
  5. Overcoming personal fears, doubts and lack of confidence
  6. Overcoming the fear of rejection
  7. Money management skills
  8. Investing skills
  9. Accountability skills
  10. Time management skills
  11. Goal setting
  12. Dressing for success

When is the best time to join a new MLM opportunity/program?
You want to get in AFTER a company has proven it has staying power (maybe 3-5 years), but BEFORE its momentum growth period (in general, the time it takes a company to go from $100,000,000 to $500,000,000 a year).

You'll waste a lot of time, money & energy getting in too early, because a large percentage of these companies fail in the first year or two. And you'll waste a lot of time, money & energy getting in too late. If the company is a household name (imagine the MLM companies you think of as dinosaurs), its momentum growth period occurred years ago. You're fighting a real uphill financial battle to start new in companies like this.

How should you choose a company/program to join based on its product or service?
 In this industry if your product is not remarkable, you are invisible.
You need a product people will buy even with no compensation plan.
Search to find a mob of people raving about a product …then fall in love with that product.
Be a passionate advocate for it. Find a product with a HUGE market and fall in love with it. Focus on the people. Focus on the market. Choose a product that everyone else wants.


I will complete this series by telling you how to join a good online MLM program like SFI, and make money, in the next article.

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