First, Why Such A High Failure Rate?
Network marketing can be quite lucrative, that is, if you know what you are doing. Sad truth remains, most people have no clue what to do and therefore quit or lose money. You have to understand that there are required skills you must possess if you intend to experience network marketing success. These skills include selling, lead generation, marketing and recruiting/ sponsoring. As you can probably guess, most people in the industry have no clue about these skills. Millions of people join each year and millions of people quit each year. It's a wicked process that puts a terrible taste in people's mouths in regards to the industry as a whole. However, there are plenty of people who are experiencing ultra success and are earning humongous incomes because they are doing some things right.
What You Must Know
Here is a list of requirements that you must follow in order to sell products or recruit new distributors into your organization:
1. Targeted Lead Generation
2. Marketing In Place
3. Recruiting/ Sponsoring
4. Relationship Building
5. Treat Your Business Like A Business
Instead of creating a warm contact list and targeting anyone with a pulse you have to be able to generate targeted leads that consists of serious, motivated and entrepreneurial minded people. These are the exact types of people you want to have in your business. Sure you might say you need to recruit just anyone in order to make a sale, but if you focus more on quality over quantity you will help your business immensely.
You can generate your own leads through various mediums such as direct mail, the internet or lead generation companies. The easiest and most effective means of lead generation I have used for my business is undoubtedly the internet. The internet allows you to position yourself to be found by people looking for what you have to offer. This is another way that enhances the quality of leads that you are generating.
Marketing In Place
Network marketing consists of one word most people seem to miss and that word is 'marketing.' In order to experience network marketing success you have to be a master at marketing. Meaning you have to have your business in front of as many eyes as possible. Big corporations know the value of marketing. Just look at the countless number of advertisement you see everywhere, all the time, for different products and services. So how do you get marketing in place?
You can market online or offline. You can either use paid or free means of marketing. Free marketing takes longer to set up, but is just as effective. If you want to start generating leads now then you will want to implement some paid marketing. Offline you can use trade journals, classifieds, direct mail and industry magazines. Online you can use pay-per-click (PPC), banners, e-zines (online newsletters), solo ads and classifieds. For free marketing online you have many options. These include social media websites, free classifieds, articles, press releases, forums, blogging and videos.
Your marketing is going to be determined by your budget and where you want to market, either online or offline. My best recommendation, for someone who has used both types of marketing, is to market online. You have paid options and free options, so even someone with a $0 marketing budget can get started immediately. The greatest thing about marketing online is the size of the internet. The internet is the largest global marketplace with over 1 Billion users!
This is the piece of the puzzle that is going to bring in the most money. You can be the greatest marketer ever, but if you don't close the sale or get a sign-up, that equals no money. Many people in the industry, struggle with this skill, because they are afraid of rejection. This rejection occurs typically as a result of the leads they have spoken to. These leads have been recycled and are called by numerous network marketers. So by the time you talk to these people they are upset and usually reject you. You should not be afraid of rejection, however. Understand that not everyone you ever talk to will join you and your business. That is just the nature of this industry and it's part of the business. Get over it and don't even think about it.
When it comes to sponsoring prospects into your business it's all about how well these prospects were targeted in the lead generation and marketing stages. You can have 'opportunity leads,' people who just would consider starting a business. Or, there are leads who are absolutely ready to get started, they are serious, entrepreneurial and are anxious to get the ball rolling. These are the types of people you want to attract to you. It makes the sponsoring process 100x easier compared to trying to pitch your business to just anyone.
This is a part of the process that people also seem to miss. Network marketing is all about building relationships with other people. If you know how to do this, you have already won half the battle. Recognize that people don't just buy or join anyone. They join and buy from people they know, like and most importantly, trust. Your whole goal throughout the lead generation, marketing, sponsoring and prospecting is to build relationships. Be yourself.
Treat Your Business Like A Business
Do not treat it like a hobby! Too many people wonder why they never made it. They wonder why they never made money. They wondered why they couldn't sell any product or sponsor a new prospect. It is because they treated their business like a hobby. They worked on it once in a while, in their spare time. Do not let this happen to you. Network marketing, just like any other business, requires work, persistence and you to learn some new skills. The biggest piece of advice you will receive right now is to never quit. Continue working on your skills, improve yourself and keep learning. You will get to wherever you want to be in time, just keep working hard at it.