Multi-level marketing or MLM is a selling business. It is marketing and you should be a good salesman. It is also called direct marketing. You come in contact with people directly. You have to be involved, meet with your prospects, talk to them, listen to them, be careful not to push them away, but hold them enough so they don't go. It is a big emotional occupation and if you are one who is not people-oriented, then, this business is not for you.
MLM is now a billion dollar industry and it has worked for may people. Top earners who are labeled as supervisors or vice presidents have six to seven figure income. When you hear that ordinary people like you and me can earn such enormous amount of money, you say to yourself that if they can do it, you can do it, too.
You're right. One of the great features of MLM is it doesn't require any educational background or experience. As long as you have the drive to succeed, you're in. If you are not that driven, then, you're out. You should be made of stone. You should always let go of the disappointment. You always have to rule out all the negative thoughts and persevere to be in your best possible mood. You have to feel great, get out there, make a sale.
The merits are great: being financially independent and wealthy. It is very very lucrative. The compensation plans for MLM representatives are outstanding. But why is it that people don't usually succeed in MLM, and even if they did, they don't stay with it?
Below are the five main reasons why MLMs fail:
1. You are working on an MLM that has no meaning to you. You're in the wrong field. Even how great the commission is, if the product is not meaningful to you, then it would not work. In selecting an MLM to work with, you should look at the product. If it is something that you can relate with, believe in, and understand it, then go for it. If your background is in construction, then think before getting into pharmaceutical products.
There are many MLM products out there and be careful what you pick. Don't waste your time, energy and money. Most start-up fees for MLMs are serious money. You have to pay hundreds of dollars, you have to buy kits and other marketing materials, in some cases, you have to get licensing in order to sell the product. Once you have invested in those, you have to at least make sure that you got what you paid for.
2. You joined an MLM just because of the great compensation plan. Your upline told you endless stories of how few people were cashing in so much income buying big houses, luxury cars, and going to exotic vacations they themselves never thought possible. While these stories may be true, they are more the exceptions than the rule.
The recruitment efforts of MLM is concentrated on telling prospective downlines the large sum of money they can potentially make. This caters to the desire to want more or to the human trait of greed. But greed has no relation with the product you are selling. The two will never be connected. You can feed your cravings for money or good things with any other preoccupation. Soon, you are on for something else and the MLM is abandoned.
3. You do not have a complete knowledge of what you are selling. You are just told to hand out magazines and those magazines will do the rest. Or hand out CDs and the CD presentation will do the rest. The product is so good it will sell itself.
I know someone who did this and had never ever recruited one. This is because she had no knowledge of the product she was selling. She just knew it was a good product based on what she heard but could not explain it on her own. She always had to rely on someone. She confused the prospects and she raised doubt in them. They thought, 'Is this the one we would want to sign up with? She doesn't seem to have a clue on what she is saying.'
You have to know what you are selling. The magazine or the CD does not have any human factor in them. There must be a reason why you are positioned between the product and the people. You have the voice, you have the smile, you have the touch. Use them to your advantage.
4. You have run out of your relatives and friends to sell the MLM to. This happens not only to MLM but any other direct marketing products. In my experience with Tupperware, I just had one party and quit. I quit because I ran out of people to sell the product to.
Most MLMs don't have any program or training on how to expand your market. They usually set you up with a website (for a fee) and they set you up with email service so you can email people about the latest update with your product. But the thing is, they made it clear that you cannot just send any of the email marketing campaigns to anyone. That would be spamming and it's illegal. So the internet is not likely the place to grow your business.
MLMs believe on the personal interaction. So your best bet is to go out in the streets and give your magazines to anyone who would accept it. You can do this in the malls and offices too but beware of the sign, 'No Soliciting.'
5. Your MLM is antiquated. Let's face it. Your MLM product or service is not selling because it is simply outdated. You have to think: is plastic in or out? Is this there another more effective multi-vitamin in the market? Is this insurance still responsive to my prospective clients? If you are not a hundred per cent sure about the applicability of a product, chances are, it has lost it's value. Maybe it's about time to move on to another MLM or consider another home business.
But don't let this article eat your heart out. There are resources out there to make you MLM work out. Think of the people who succeed in this business. Surely, they have a game plan that worked. But my word of advice is: in every business, always always think before leaping. If you have a single doubt about the business, then don't pursue it. Dot all your i's. You'll be glad you did.
To find more articles on MLM, other home businesses, freelance career, and more ideas on financial freedom, visit www.wealthyfreelancer.com. |
| Author: zonie |
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Author Bio:
Lucille R. Haake is an entrepreneur and financial analyst based in Florida. For more of her articles, visit www.wealthyfreelancer.com. |
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