Free MLM Information Tips and Strategies To Build A Successful MLM Business

When new distributors start their network marketing careers, they spend hours, days, months and more looking for the "secret" to network marketing success. And, they don't find the "secret."

Why?

Because there are no "secrets" in network marketing -- just a whole bunch of stuff we don't know.

These new distributors chant affirmations, cut out pictures for their goal boards, tell themselves how motivated they should be, sing the company song, cheer at rallies, practice flipping pages on their presentation books . . . and they don't "get it."

You see, success in network marketing comes from learning the "magic words" and "magic sequences of words" that trigger the prospect's mind to understand, believe, and want to use our products or join our opportunity.

There are hundreds of these magic words and sequences of words.

All we have to do is to start learning them and watch our businesses improve.

So instead of surfing the Internet, working hard in 100 different directions, and wondering what's wrong, distributors need to simply concentrate on learning the magic words, and magic sequences of words that get their prospects to act.

Now, this is too far from new distributors' current beliefs to accept, and they don't have the case studies and examples yet to change their beliefs. That's why when they come to the "live" workshops they "get it" and understand how to get prospects to join effortlessly.

But remember, it's the things that we don't know, the things that sound unbelievable, the things that sound bizarre, that have the best chance of getting us the new results we want.

Tom "Big Al" Schreiter

For those networkers who are building their businesses online as a way to seek mlm internet success, becoming a member of a web 2.0 site can be a powerful way to meet potential prospects. For those who may be in the dark, web 2.0 sites are simply online communities where people gather to meet, socialize, and share ideas. Popular sites include Myspace, Facebook, Direct Matches, Orkut, Twitter, and Ning, just to name a few.

Joining sites such as these can be a terrific way to meet like-minded people from all over the world, some of whom will be interested in and want to join a mlm opportunity. Unfortunately, many networkers seem to think these communities are places to just pitch others on their business. They fail to realize that this is not what these online communities are all about.

Once a networker understands what being a member of web 2.0 communities is all about, they can use this tool, find mlm internet success, and grow their business. Let's look at the top three secrets to building a mlm business the RIGHT way as a web 2.0 community member.

1. The focus should purely be on building relationships. Yep, you heard right. The focus should be on relationship building and NOT on pitching your deal to people and hyping things up. Since 95% of the population dislikes being sold, and this includes those in web 2.0 communities, using this strategy will only result in failure and frustration. Don't you hate it when people try to pitch you on something? Well, other people do too! So, work on getting to know people. Add friends who have similar interests as you, comment or post something positive on other people's profiles or blogs, add valuable information to the community based on its needs, etc. Hopefully, you are getting the picture. Just focus on being friends to people Without an agenda! Remember too, not spread yourself too thin. To do this the right way, being a member of a ton of communities will not work. Pick only a few.

2. Create a profile that shares your story. Once more, no company product or name should be in the profile. In your profile, just briefly share some personal information about yourself, what brings you to the community, what you hope to gain from being a member, etc. You can also share your challenges and solutions. Once more, you can do this without going on and on about your company and products. Just be yourself!

3. Create a blog within the community. A couple of times per week, do short blog posts that add value to the web 2.0 communities you are a member of. You should not have a problem figuring out what to say since as a member you will have an idea of what people are struggling with, what answers they are seeking, etc. By answering questions and adding useful content, people will begin to think of you as an expert and come to respect you. They will want to get to know you and contact you. If you are wondering where in the world to gather information, you can go to any article directory such as EzineArticles.com to find great content.

When it comes to mlm internet success, being a member of a web 2.0 community can be a great way to build your business. If you follow the top three secrets that were discussed in this article, you will have no problem meeting lots of people, will make lots of friends, be viewed as an expert, and attract people who will desire to join you in your business. What a stress free way to build a mlm business!

Many networkers diligently seek how to build mlm successfully. Unfortunately, for some, the journey is not pleasant and they end up becoming frustrated and even quitting in some cases. What they fail to realize is that there are 6 mistakes that many people in mlm are making. By becoming aware of what these mistakes are and learning to avoid them, they can get back on the road to success.

If you want to learn how to build mlm, take a close look at these 6 biggest mistakes made in network marketing and do the opposite!

*Mistake #1: Not having a business owner's mentality. There is too "employee minded" mentality for many in mlm. When a person starts their business, they should view themselves as the CEO and president. This means creating a plan and taking action consistently to achieve success. It also means taking responsibility for when things go well or don't. It does not mean working the business when you feel like it, working hard for a month, and then stopping for two, etc. This business should be treated like any other. Anyone with a "follower" mentality or wanting to sit around until they are told what to do will be in for a struggle. After all, this is "network marketing" and not "net free".

*Mistake #2: Failing to make decisions. Unfortunately, some desire to know how to build a successful mlm, but never take the time to figure out their "why"; why they want to do this business and what kind of incredible life changes will be the outcome of their success. If the reason is "just for the money", a networker will not be around long. Some too, never make a decision to succeed. They will say things like "try", "I'll do my best", "I'll give it a shot", etc. There never is "I will do whatever it takes to be successful". If a networker has not made this crucial decision, prospects will pick up on it and figure it's not worth joining if it's going to dull and just like another 9-5 job.

*Mistake #3: Expecting too much too soon. Many prospects are given the impression that building mlm is easy, anyone can do it, and the money will start rolling in very quickly. Now, there are some who do come in and explode, but these cases are rare. Most people can't make loads of money that quickly. There is a learning curve and everyone's pace is different. Too many prospects are presented with hype and get rich quick scenarios. This is falsely leading them and anyone who uses these techniques will find it difficult to successfully build mlm. It is ok to show people how the business can be exciting with huge potentials but it needs to be presented realistically.

*Mistake #4: Work is done in spurts. If a networker is seeking how to build mlm successfully, working in spurts will doom them to failure. Work done in spurts is working for a few days and then stopping for a few, or working hard for 5 months, and then doing nothing for the rest of the year. What is needed is constant and consistent action, even if little results are seen at first. The work in spurts actions will only result in frustration and for some, quitting the business.

Mistake #5: Thinking it's just a numbers game. While it is true a networker will likely talk to many people before finding a true leader, having the mentality of all that is needed to do is buy lists, talk to a certain amount of people, and then the business will explode is flawed. MLM is all about relationships, and not calling 100 people in day and expecting 30 to join on the spot. MLM is about helping others achieve their goals and dreams and this can only be done by taking the time to get to know people. Extraordinary results can be achieved when rich relationships have been developed.

*Mistake #6: Failing to develop leaders. When it comes to how to build mlm successfully, many networkers fail to realize that extraordinary results can be found not with 100 distributors, but leaders who can successfully build big downlines. In many cases, this may only be 3-4 people. You want to be a leader who breeds leaders who are independent. You train, teach, and show them how to build the business, and then let them build their teams. You teach vision, principles; skills that will help them achieve success. Yes, this is work, but the value of true leader is tremendous. Remember, this is network marketing and not net welfare, net free, etc. It is much better to spent lots of time with 3 or 4 leaders who will multiply leaders in their teams, then have a mass of distributors.

So, if you want to know how to build mlm successfully, avoid the top 6 mistakes that were covered. Build your mlm business the right way, become a leader with vision and seek to find others who are true leaders. Have a powerful why and not do the business just for the money. If you build your business this way, you will find success.

Many professional network marketers know how important it is to have on-going prospects to present their business opportunities to. Unfortunately, many go about this in the wrong way and struggle a lot. As a result, many ask the question how to recruit in MLM and how to be successful in mlm. The truth is, there is a right and wrong way to recruit. The path you choose will make a difference in whether you are successful or not. Let's take a quick look at how this works.

The Wrong Way to Recruit In MLM

This might be painful for some people to hear, but hey, if in the long run it helps, a little pain is worth the gain!

-Focusing totally on recruiting and ignoring building a customer base and retail money they can provide

-Having no target market and presenting the business opportunity to anything that is moving and breathing
-Making a list of your friends and family and trying to get then in "on the deal"

-Buying leads and as a result getting 99 "no's" to one "yes' when it is much more effective to generate your own

-Having no duplicatable system for your team

As you can see, when it comes to how to recruit in MLM and how to be successful in mlm, these are the problems that many run into. If you are doing any of these things, now it is time to stop and go about this in the right way!

The Right Way To Recruit In MLM

Yes, for every wrong way to recruit in MLM ,there is a right way. So, let's focus on those for a bit.

-Build relationships since people will join you and not your company

-Have a duplicatable system for your entire team to use. It should be one where it is easy to attract those who are looking for an MLM opportunity to join, or are struggling and need help so they can become successful. With this type of system in place, you business will grow.

-Avoid trying to "sell" and "close" people. Instead, focus on what people really want and provide the answer as to how a product or your business opportunity can meet that want. In other words, learn to listen very carefully first!

-Have a proper balance of recruiting and retailing. With this balance, your business growth is certain.

-On-going personal development is essential. You can almost view this as a sure way to put money in your pocket. The more you grow, the more your business will grow.

If you have been struggling with how to recruit in mlm and how to be successful in mlm, I hope the ideas presented will help you see there is a right and wrong way to go about building your business. Choose to focus on the right ways and you will be sure to see success.

This is a free mlm tip if you are a network marketing distributor who is using internet marketing strategies to build your business.

I am sure you have heard about the importance of doing keyword research before you do any type of online markeing whether it be blogging, article writing, creating online videos, using classified advertising, etc. If you fail to find the right keyword for your webpages, articles, blog, or whatever medium you are using to get the word out, you will find your all your hard work will fall rapidly into obscurity in the Google world.

Here are 7 tips you can follow to do genuine keyword research that will assist you in getting your pages into the top ranks on Google.

*With any keyword research tool whether it be Wordtracker, Overture, SEO Book, etc., it is best to let the tool tell you what the market place is looking for. For example, instead of using a phrase like "prices for antiques", instead type the word "price" and see what comes up.

*Began to think of keyword research as more thatn just searching for the right word. Instead, use topics of interest and watch what interesting results you will get. This will show the search behavior and industry related trends. For example, if you type in the word "locate" in Wordtracker, you will get some results like
"where can I locate someone in the UK".

*Here's another free mlm tip for your keyword research. Research words that may seem very common place. Many times you will be amazed at what people are searching for. For example, you could use "free", "draw", etc. Try typing that into the keyword research tools and see what interesting results come up. They very well could fit your niche.

*Work on not trying to be too analytical and logical. Branistorm random ideas and common words. Using Wordtracker as an example again, typing "why" into the search bar will come up with results such as "why shouldn't people smoke", "why do people use terrorism", etc.

*Do research based on on questions people are asking about on the internet. Eamples such as "waht does your body fat percentage mean", "how to fix and ipod if it shows error", etc., are what some people are looking for. If you can provide answers to people questions, you can build relationships and likely make sales if you have a product that fits their need.

*Many of the keyword suggestion tools have acronyms functions in them that you can check. Always take advantage of these tools.

As a network marketer who uses internet marketing strategies to build their business, make sure you follow these free mlm tips to ensure you get targeted traffic to your site.

As a professional network marketer, one of the most important skills to develop is how to present your business opportunity to prospects in a way that will keep them leaning forward instead of scaring them off! Here are a few free mlm help tips you can follow to make this process more enjoyable and stress free.

Step One: The First Call

-Ask your prospect if they done a home business before. This will help you identify if you are dealing with someone who has never done MLM or if they have previous experience.

-Talk with your prospect about the difference between linear and residual income. Explain to them that linear income is what you would get from a full time job where you are paid every 2 weeks. If one wants to make more money, more work needs to be done. If the work stops, the pay stops. Residual income is when you do something right one time and then get paid for the rest of your life.

-Tell your prospect you will teach them the skills they need to gain residual income

-Set an appointment for the second call.

Step Two: The Second Call and More Free MLM Help Tips

-During this second call to your prospect, share your story. Talk about how you became involved in the business and why. This will help your prospects open up to you. They will be almost obligated to do so because you freely shared with them.

-Ask the prospect what their dreams are; if they could do anything do anything, what would it be? The prospect should write down their goals, dreams, and aspirations. Once they are finished, ask them if anything else comes to mind.

-Once the person has explained their dreams and goals, ask if their current income will help them reach them. When you do this, you are putting yourself in the light as someone who can help them find a solution to their problem.

-Begin a discussion on the different ways one can reach their dreams. Examples include the following:

a. Investing. This requires capital and knowledge.
b. Second job. This will take away from your family time, put more stress on your, etc.
c. Start a traditional brick and mortar business. This takes capital, skills, knowledge, etc.
d. Build a network. A network based on residual income which will last a lifetime.

Ask your prospect which of these ideas sound doable.

After you have gone through these steps and if the prospect is still interested, you then use your mlm company's third party tool such as a conference call, website, brochure, etc. that will explain the business more in detail. These free mlm help tips are great ways to present a business opportunity that will not come across as a sales pitch and help people think carefully about what they really want and the best way to get there.

As a network marketer, you know how important it is to have a steady stream of customers so your business can continue to grow. The following free mlm training tips you can begin to use today to expand your business. Here is why it is important to always have these 6 proven methods as part of your overall plan.

#1: Always have a marketing plan. Most people want to be successful, but few plan to be. This is true not only in our personal lives, but in business lives as well. The most important thing you can do for your mlm business is to sit down and develop a marketing plan. Many people in mlm fail or just float along in their business because they don't have a plan or goal for their business. So, if you have not developed a plan yet, it's past time that you do so.

#2: Test, test, and test some more. You have to test all of your marketing methods. No matter how great you think your idea is, you need to always test it small at first. Then, let responses tell you if it is going to work or not. Make sure you test everything: headlines, ad copy, incentives, etc.

#3: Test one piece at a time. If you are going to make a change, make one change at a time so you can see clearly see what is working. Here are some ideas for you to consider when you test:

-test headlines
-test newspaper ads
-test different offers
-test different guarantees
-test different response forms

The list can go on and on. Make sure you always follow these free mlm training tips.

#4: Use Target Marketing. When you have found out what particular niche in MLM you will target for your marketing methods, you can divide that market up into more than one. You do this by market segmentation. What this does is to allow you to focus in on one group at a time for your marketing campaign. This always will increase the power of your marketing message. Here are some ideas for you to consider:

-Demographics: age, sex, income, marital status, occupation, etc.
-Psychographics: customer behavior needs, shopping patterns, values, goals, and wants.
-Spending habits.

#5: Use information from sources that are already available. For example, when you are putting together information to use in a marketing plan or campaign, you should take advantage of information that is already available so you don't have to reinvent the wheel. For example, the following types of information are available from your local library, Chamber of Commerce, Better Business Bureau, local newspapers, etc.:

-Demographic information
-Local business information
-Local economic activity and trends
-customer buying activity and patterns
-other local business information you desire to obtain

#6: Use the chamber of Commerce and Other Local Agencies

Every town and city has a Chamber of Commerce which has current lists and brochures of businesses in your area. In other words, there is a wealth of information that can be obtained. So, make good use of it.

These 6 free mlm marketing tips are very easy to implement in your marketing plan. Following these 6 tips can greatly enhance your customer base.

Free Network Marketing Leads: How to Get Free Leads for Your MLM Business

Getting free network marketing leads is a desire you and everyone else involved in network marketing has. Nowdays, most people are aware that web 2.0 (aka social network sites) such as O Jeeze, Facebook, Myspace, Direct Matches, etc. are great place to network as well as build your business.

The problem that occurs is that most people fail to use social networking sites to their advantage. As Mike Lewis in his article entitled, 'Social Networking. . . . . . and The Law of Rejection' says:

"Surely there can't be anyone who is involved in any social network who has yet to discover the law of attraction?

Then why is it that so many social networkers are so hung up on becoming experts at the Law of Rejection?

The Law of Attraction is all about creating an environment that position you as a very attractive person, it's about becoming a very attractive person. It's about showing up in a way that draws people toward you because of WHO your are, NOT what you do."

Now, for some, those words were very painful to hear. The good news is that you can learn to use the Law of Attraction. If you learn how to do this right, you will not have any problems generating free networking marketing leads for your mlm.

So, using the social network site Direct Matches as an example, let me give you a few tips on how to use your membership as a way to attract others to you.

*Do NOT pitch. As a member of Direct Matches, I am sure you have noticed things in people's profiles such as how their biz is the greatest on the planet, how you will make thousands of dollars quickly, etc. When you create your profile, do not pitch like you see other people doing. All you need to do is share your story, give a few personal notes about yourself, and then offer networking and friendship to others. That's it. Make sure you include your picture as most people want to see the person they are connecting with. You can put an eye catching signature file in your profile as a way to share in a non-sales way, what your biz is. People will respond to this approach much, much better and will desire to connect with you.

*Offer something of value. Give away your free report, a free ebook, a free something that can benefit people in their business. This can be a tool that introduces people to what you do in a non-threatening way; they won't think you are trying to get them in on your deal.

*Ask questions as you invite people to connect with you. You can build up a friendship list pretty quickly with Direct Matches. It is best to contact the people who have joined in the last 24 hours since they will be sure to get your message. For the people who have had memberships longer and use free accounts, many will not see your email since they are only allotted a few free messages when they first join.

After you ask the person to connect with you, also send them a brief email. In this email, tell a little about yourself, comment on their profile, welcome then to Direct Matches, and then ask what are their two biggest challenges as they build a biz. You will find that people will respond to you. This is a great way to begin to network and develop friendships.

Using social networking sites such as Direct Matches and the many others are a great way to not only meet new people, but also find free networking marketing leads for your mlm home based business. The people who do ask questions will be the ones who are serious and trust you because you have a solid relationship with them.

What a great way to build a biz in a relaxed, fun, and stress free way!

I wanted to share with you my story about a free mlm tool that I found that I'm currently using to build my mlm business.

I'm from the USA and live in the state of Virginia. Because of where I was raised in my childhood, I have always loved country living and being out in nature. So, my current country home in Gore, VA suits me well.

During my childhood, I also discovered something very interesting about myself. At any early age, when we were pre-teens, my sister and I were asked to help out in the children's division at our church. Though we both were nervous at first, we soon discovered that helping and working with little ones was fun and we were happy to do it. I continue to do this these years later.

As I grew older, this enjoyment of helping others, especially young people, guided me to become a licensed clinical social worker and behavior specialist for young people with developmental disabilities. While my job can be challenging, it also has great rewards when I see a young person make significant progress in their life.

Some years ago, I began to think about earning residual income from home. The book, "Rich Dad, Poor Dad" by Robert Kyiosaki, and other books that I read, increased my desire and excitement to take action and find a good home based business opportunity. So, I became involved in networking marketing. This was an easy decision for me since Kyiosaki recommended it and it fit my desire to help others.

At first, I was excited about being a network marketing distributor with a well-known company. But after a time, I began to encounter some difficulty. It seemed that advice I was given was not working. I was told to make a list of my friends and family, and buy leads. There also didn't seem to be a system in place or a mlm tool that anyone could use successfully to build their business.. Something seemed to be missing and I wasn't sure what it was. I struggled for about a year and then just gave up and quit out of sheer frustration.

One day after joining a internet social networking site, I found a friend. I shared with this friend my experience and my "why"; why I still desired to earn residual income from home. He began to teach me about the mlm business without pitching me on his company or any other company. My friend told me it wasn't my fault that I had failed and introduced me to a system he uses successfully that is not based on selling. My friend said that this system provides unconditional support with an emphasis on helping others become successful in their business; that is educates people on the MLM industry with no strings attached.

I began to think that this is what I was missing in my previous network marketing venture.

Hearing my friends' story resonated with me since all my life I have enjoyed helping others and I feel good when I do so. So, I decided to take a closer look at this system, appreciated what I saw, and decided to become a part of this special team. The other good news is that this system was instrumental in helping me find a solid MLM home.

What's beautiful about this mlm tool, is that is a system is that you do not have to work 24-7. You can spend 1-2 hours a day if that's all the time you have and still see success. I really needed this since I work full time and only can work a few hours per day.

What's also cool about this is that you can have lots of fun doing it. I can still do all the things I enjoy in my personal life, plus I can help and teach others what I learn and do so they can be successful too.

So, this is my story about a mlm tool, which is a free system called Mentoring for Free, that I found to help me successfully build my mlm home-based business. This system has changed my life and business. I wish you success in yours as well.

How to Get Free Advertising on Google 24-7!

1. Set goals. You must figure out where you want to be in two to five years from now. You must think about ways people find an find you. You don't want to be a slamming and hammering sales person since over 90% of the population dislikes that approach. You don't want to chase after people , but have THEM chasing after you. How will you do this? If you don't have a plan in place, you are not focused. So, the first step is to set some goals.

2. Name recognition. People need to know who you are. This does not happen immediately, but over time. Unfortunately, most people will quit before they ever reach this point, but for those who are committed, the will amply be rewarded for their efforts. Therefore, you must plan right.

3. Systems. As you think about your strategy, you must have a system. You must be able to see who is on your list in a glance; have a contact manager, and be able to keep records. I personally use a system for 19.95 a month that enables me to build my list by giving away a free resource, has email features, comes with an autoresponder, has 8 splash pages, includes training on how to market as well as places to market, and much more.

4. Don't believe the hype the heavy hitters or guru's promote. We all have seen headlines about how people make thousands of dollars almost overnight. Many of them almost sound like these people got rich quick.

With any network marketing internet home based-business opportunity especially, it takes time to build a frontline with strong leaders; leaders who will retail and bring in other leaders for their teams. This does NOT happen overnight. It takes work. If you see promotions from others where they seemed to have skipped this step, there are three possible reasons:

a. The person sold audio tapes, some sort of report or system, where they claimed they did something.
b. They previously had a large downline and just transferred it into a new company.
c. The person has good name recognition. So, a MLM company asked them to promote their company, and gave them a huge downline. The heavy hitter than began to advertise for them.

Now that you have a foundation on what you need to do first, here is the secret to getting listed on page one of the web's top search engine, Google. The "secret"-articles. Writing articles is the best way to get listed on the #1 page in Google. Article marketing really must be part of your plan. Writing articles brands you, gives you name recognition, and repeat traffic if you are able to connect with your readers. In addition, years from now links can keep coming back to your site.

So, how do you go about doing this?

*Figure out what is popular in your niche. For example, what are people looking for and talking about related to network marketing? What are the most viewed articles in places such as Ezinearticles.com? Just browsing through related categories and the most viewed and popular articles can give you a good idea. What you see will let you know what to write about. You can also use material from any ebooks and other resource that you have. You also can hire people through places such as Elance.com if the thought of writing an article sounds overwhelming.

*After you figure out what people want, do a keyword research related to your topic. This will help you discover how to get free mlm traffic. Focus on long tail keyword phrases which are 3 words or more. Phrases such as internet marketing, mlm, networking marketing will never get you on the first page of Google since there is way to much competition or those keywords. A phrase such as free mlm resources" likely will get you better results.

*Use a keyword tool to help you and to save time. Wordtracker is excellent as well as Google's free tool, Good Keywords, etc.

*Once you figure out your keyword, put it in quotes and then go to Google to see how many searches there are for it. As mentioned before, huge results such as 40,000-50,000 will get you nowhere. Go for results 5,000 or under.

*Once you have found the long tail keyword phrase you want to use, use the exact phrase in the title, and first and last paragraph of your article.

*Submit your article to ezinearticles.com . Of course, there are other directories you can as well such as article marketer.com which is a free distribution service. Once you have submitted your article, in a week do a Google search to see where you landed. If you don't like the page you are on, you can go back and make changes to get better results.

* In your resource book, add a link to your blog or unique splash page where you are branded. It is best if it is unique and different especially if you are in MLM where everybody uses a generic splash page.

No matter what network marketing home based business opportunity you are involved with, article writing is a great way to bring in free mlm traffic and and prospects over a long period of time. If you are not using this marketing strategy now, take action and get going today as the payoff can be huge!

Network Marketing Distributors: How to Discover if Your MLM Compensation Plan Has Breakage

All network marketing distributors want to be involved in a MLM opportunity they can build right and big the first time and then retire. However, for many people, this dream seems to be quite elusive. They struggle and fall so much that they give up. The truth is, if the cards are stacked against you in the first place, you'll just not be able to make it.

You see, you very well could be involved in a company's whose negative business model drives negative and unsuccessful results in the field. You probably are wondering what I am talking about. Let's take a close look at how a compensation plan can be a huge factor in this.

One thing you want to make sure of is that you NEVER have any breakage in your compensation plan. Breakage is simply money that is supposed to go to you, the distributo per the plan, but somehow reverts straight back to the company.

Here's how it works. Let's say there are three companies:

Company X: huge and publically traded

Company Y: huge, many years in business, but not publically traded

Company Z: been around for 5 years, but much smaller in dollar volume and number of distributors when compared to X and Y.

Keep in mind that one thing we do know is that the most experienced, successful, and proven companies which sell identical products with identical ingredients, the wholesale costs should be within nickels of each other.

But, for some reason, check out what happens:

Company X: product sells for $116 retail

Company Y: product sells for $104 retail

Company Z: product sells for $40 retail

Hmmmmmm. Not looking too good is it? As a matter of fact, it looks like companies X and Y's distributors are going to have a difficult time selling their pricey products. Herein lies the problem. If you ask any network marketing distributor if they have ever sold a product at retail price, many times the answer is "no". This is because of the steep price. So, the reps for these two companies have no choice but to keep signing up distributors (who catch a break with a wholesale price) because most average folks can't afford that ridiculously high retail price!

You might be asking, why such a huge price disparity? Well, let's see. Company Y, while not publically traded like company X (set up before the internet) has excellent customer service. Company Z, formed just a few years ago, has an automated model without tons of phone operators. As a matter of fact, about 97% of their orders are placed online.

The end result is that company X and Y have huge overhead costs such as personnel, salaries, training, insurance policies, workman's compensation, vacation time, etc. As you can imagine, this can be quite expensive!

So, how can company Z retail the EXACT same product for $40? Well, it is simple. The overhead is thousands of dollars lower. Unfortunately, since the network marketing distributors in companies X and Y can't retail products, they constantly have to recruit so that people can join and get the wholesale deal.

Are you beginning to see why there is so much frustration and failing going on in many mlm companies? The breakage is sucking the life out of network marketers distributors paycheck and going straight back to the companies to cover costs. They are forced to recruit, recruit, and recruit more instead of having a plan where there is a nice balance between retailing and recruiting.

So, do some research. Compare you compensation plan with other companies. Make sure there is NO breakage. If there is, it very well could be that it's time find a new home.