Businesses Benefit From Network Marketing

Several types of  businesses would greatly benefit from using the network marketing distribution model..but why don’t they?

I think a lot of companies fail to seek this type of expansion for a few reasons: one being the mis-information and stigma surrounding the MLM industry. The second reason probably stems from the fact that it is difficult to set up all the necessary structure to make a MLM company work and that the company doesn’t know where to begin or who to turn to for help to make that start.

The biggest industry that would benefit from using MLM to market their products would be As Seen On TV products. People LOVE the “big reveal” of products that work wonders and it would definitely take off if the companies would just look into using this model.

If the compensation plan paid the independent reps well then they would be that much more motivated to move the products, thus generating more revenue for the parent company.

Other industries that would also make a killing using network marketing to distribute their products would be companies in the service industry, such as movie rental memberships like Netflix or game rental memberships like GameFly. If you had movie lovers and gamers promoting these companies the revenue, again, would be staggering.

Digital downloads would also benefit greatly from a people to people marketing arm. Think about audio books like Audible.com, Amazon e-books, etc.

All in all- big companies need to really look into marketing their products and services through Network Marketing, people to people marketing, affiliate marketing… call it what you will, but it works!

 

MLM Overhauls Needed in 2011

MLM (network marketing, affiliate marketing, the distribution business model..call it what you will) needs a major overhaul in 2011.

For crying out loud there are still marketers out there who ask you to dinner, “magically” meet up with a business contact and then ambush you about how you need to join!

It is 2011, people, and there has got to be some work done to the MLM’s who survive and thrive from here on out.

• The company has to have a GREAT WEBSITE that MUST WORK. Period. If you send me to your MLM and it looks like an old Angelfire homepage then you’ve probably got bigger problems (i.e. funding)

• The company’s owner and leadership team MUST be featured. The field should KNOW who these people are and why they are qualified to be leaders.

• STOP SHOWING LIFESTYLE SLIDES IN PRESENTATIONS!  Nobody believes anymore that in 3 years they will be dancing on a beach every day or stepping off their private plane.  This was big in the 90′s but in 2011 people just want realistic income that can help pay their bills. Now when the economy is better as a whole, sure- go back to showing pictures of fast cars and big houses but GET REAL for right now!

• You MUST have a reasonable start up cost. Owning a franchise should never be free because that just seems hokey to me. If you don’t pay anything for it then WHY is it worth anything?  The value just isn’t there. Then again an MLM should never be over $700 to enroll in. You’re buying into an independent distributorship and it takes money to make money but in this economy anything over $700 is totally unreasonable.

• Have a product that is actually useful and cost effective to the end consumer. For instance, The Trump Network really dropped the ball on choosing an expensive health product when the average American consumers can barely afford the generic vitamins at Wal-Mart.

• Have effective and consistent communication with customers and the independent distributors in the field. Nothing raises a red flag more than when a company stops sending out communications. And on the flip side it generally takes 3 marketing outreaches to a consumer to get their attention which engages them and often leads to more sales (or customer referrals) so consistent contact just makes sense.

• It is always a good idea to do a marketing piece that features happy customers AND happy distributors. People are skeptical of online companies these days-especially those who are never seen in the public eye of tv or social networking and they need regular customers and successful distributors to relate to.

What do you guys think? Did I leave anything out? This post was from the top of my head so feel free to chime in.

 

Success and Failure part 2

It’s a cold winter evening so I thought I would finish up the part 2 of my take on Jeffrey Gitomer’s chapter about traits of and the difference between failure and success from his book The Little Red Book of Selling.

10. Take Responsibility. It’s human nature to blame others for our failures. However, you have own up to your actions. Successful people take responsibility for everything they do and everything that happens to them.

11. Take Action. Period. Say you’re going to do something and DO IT. Talking big is a large part of vocalizing your goals..but follow through and take steps towards making them happen.

12. Make Mistakes. Be willing to make mistakes. Making mistakes is only failing if you quit after making the mistake! You can never grow and learn without making a few mistakes along the way. Embrace them!

13.Willing To Risk. No risk, no reward-or as Gitomer says- no risk, no NOTHING! Risk is the basic of success. If you never step outside your comfort zone then nothing will ever change for you!

14. Keep Your Eyes On The Prize. Vocalize your goals, write them down, post them where you can see them daily. If you lose sight of what you’re working towards, then it is easy to lose your motivation.

15. Balance Yourself. You’re pulled a million different directions in your day to day life- aim for balance yourself by trying to manage your time, eating better, and taking time to relax.

16. Invest, Don’t Spend. This is a BIG part of where people fail in this industry. When you spend, make wise investments and stick to the goal is MAKING more than you SPEND.

17. Stick At It Until You WIN. Another reason people fail is because they quit TOO SOON. When it gets tough, they quit. Times get tough, but then they get better. Are you a quitter, or a winner?

18. Develop And Maintain A Positive Attitude. Life is about perception. So is success. So are you positive, or negative? If you are negative about your business, then why do you still do it?

18.5. Ignore Idiots And Zealots. This is my FAVORITE. I also include haters in this list. All of these people will try to rain on your parade- and if you LET them, they win. These people have no parade of their own..so avoid them. Period! This goes for your facebook list too- I regularly purge people who whine about their life, yet never do anything, and those who are rude and/or mean. I suggest you do it, too! You need positive energy in your life!

A side note about 18.5- stop being a zealot yourself. Excitement can EASILY cross that line (believe me I’ve been there) so if you find that people treat you like a zealot perhaps there is some truth to that so all you need to do is tone it done just a little and put that energy into action rather than talking about whatever it is you’re doing.

 

Success and Failure part 1

Tonight I’m re-reading Jeffery Gitomer’s Little Red Book of Selling.

I came across the section about the difference between failure and success and wanted to share.

There are 18.5 talking points- I’m going to cover 9 here, and 9.5 next time.

1. Believe You CAN. People have always ALWAYS said it is mind over matter…and that’s 100% true. It seems simple and even silly, but merely believing you can actually gives you the confidence to achieve your goal.

2. Create The Environment. This goes along with the “believe you can” concept. Surround yourself with positive, supportive people and this will encourage you to have a great attitude and believe in yourself.

3. Have The Right Associations. Again- it’s about attitude. See the trend here? Hang around the right people- positive, encouraging, supportive people and you will be on the mental road to success. Basically- cut the junk out of your life- and by junk I mean people with mean, nasty, bitter attitudes. They just suck the life out of everyone and everything around them. Cut them loose. You’ll be better off.

4. Expose Yourself To What’s New. This means learn something new every day. Educate yourself. Check your back office every day. Involve yourself 110% with your business. Check out the .com site, check out the .biz site, and talk to your fellow Community Directors often- daily if possible.

5. Plan For The Day. “Since you don’t know on which day success will occur, you’d better be ready every day” Well said, Jeffery. The old Boyscout saying rings true here- always be prepared. Have cards with you at all times. You never know when someone will say “hey, what is it you do? How can I get in on that? or “I LOVE the internet- I’m on allll the time!”

Also, prepare for your day by making goals, big and small. And DO them! Following through is a big part of being successful.

6. Become Valuable. Period. Know the comp plan as best as you can. Introduce yourself to the top income earners and corporate leadership team. Check your back office often.

Read up about industry news. Know what to say (and be RIGHT!- get your facts straight!) Become a knowledge base for both prospective Community Members, Community Directors, and current Community Directors.

7. Have The Answers Your Prospects And Customers Need (Community Members in our case!). This echos #6. The more you know, the better you can solve problems, answer questions, and help your prospects understand what it is you’re doing with your company. Incorporate facts with ANSWERS to people’s questions. If you don’t know- FIND OUT!

8. Recognize Opportunity. I have recently realized that opportunity appears when you’re not expecting it to. This goes back to being prepared. Know your stuff. Have cards handy. Ask people to join our free online community. Ask questions and work on developing a rapport with people. Again, people love answers more than they love facts.

9. Take Advantage of Opportunity. First, open your eyes and recognize it. Second, ACT on it. Seize your opportunity- ask friends, family, acquaintances and strangers to join your free online community. Leave sizzle cards (aka drop cards) places where people will find them.

The sky is the limit, my friends- believe in yourself, know your stuff, and simply open your mouth and ask someone to join our community today!

How to be Successfully Self Employed

I find that many people are doing side jobs for extra money lately…lots are turning that photography hobby into a side business, mowing lawns, looking at my company or other network marketing opportunities like Mary Kay, Avon, health pills, and the like.

Here are some of what I think are excellent traits and will help lead people towards successful self-employment.

• Be willing to TELL SOMEONE about what you’re doing. Period. If you struggle to ask someone to help spread the word, ask their cousin to think of you for their wedding photographer, etc. then how can your friends and family know you’ve got a new side business and that you’re serious about it?
• Get used to hearing “no thanks”,”not interested” or “that will never work” You will hear no more than once. Thank them and move on.

• Dress professionally when on the job or looking for new business

• Learn how to speak more effectively without the “ums and uhs“. Talk to your cat. Give a pretend presentation to the mirror. WHATEVER IT TAKES to get comfortable with your new side business, DO IT.

• Realize success will not happen overnight. It probably will not happen for the first 4-5 months. BUT STICK WITH IT.

• To be successful, you must be proud of what you do and promote it with excitement.

• Be creative. Start a blog. Join a local community service group

• Talk with people in the community. Everyone knows SOMEONE who can use your services. Consider the budding photographer example…everyone knows SOMEONE who is getting married, graduating, needs family portraits, etc. JUST ASK.

 

Never Buy That Prospect Into Your MLM

So you’ve got this great person who you’re SURE will do well for themselves with the help of your business. They’ll make a great rep, they’ve got contacts, they are outgoing… but there’s a problem. They don’t have the money to sign up.

So what do you do? If you’re anything like me you really want to help other people achieve success.

Especially if they’re friends of yours. You might even offer to pay their sign up fee to help them. Some promise to pay you back, and you believe some of them will.

But 5 months pass by and they haven’t done a thing since they got started. That excitement wore off.

So why do they quit? BECAUSE THEY DIDN’T SPENT A DIME OF THEIR OWN MONEY! That’s why! So they DON’T CARE!

Rocket science, right? Well, I just realized it. I knew it all along, but I just REALIZED IT when I looked around at people I’ve wanted to help who quit- and only 1 of probably 10 I paid for have stayed over the course of 2+ years.

I was young and excited…and naive. My advice to you? DON’T DO IT!

If someone over 25 doesn’t have the few hundred dollars needed to make extra money then they’ve got more problems then just needing the opportunity you’re offering them.

And one more lesson- people, rich and poor, will FIND the money if it’s something they really REALLY want.

If someone tells you they don’t have the money they will either GET IT, or they’re lying to you.

I can’t tell you how many people have told me they wanted to but didn’t have the money only to post pictures on Facebook of the new dog, tattoo, pair of shoes, etc that they got that are often MORE expensive than the cost to join my company!

Put your energy into people who have the drive to GET the money if they don’t have it and are just looking to better themselves and make more of it.

That’s just my 2 cents….

What do you think?  Have you had a heart as big as mine and paid for friends to join your opportunity only to have them be dead weight?

Think and Grow Rich Book Review

Recently I listened to Napoleon Hill’s famous “Think and Grow Rich” for the first time. I don’t know why it took me so long! Hill guides you through his success principles that took him 20 years to create.

This book is subjective- everyone take away something different. This is what stuck out to me.

 

• Thomas Edison had over 10,000 failures. (What if he had quit at the 5th? The 5,000th? We’d be sitting in the dark right now.)

• You MUST HAVE a burning desire for your goal or you will never achieve it.

• Every failure brings with it the seed of an equivalent success.

• Desire+planning+persistence= riches (however YOU define riches)

• You MUST HAVE a positive pleasing mental attitude.

• Riches aren’t just monetary

• Persistence is key. So is discipline.

• People who make decisions with planning have wealth. Those who make decisions quickly and without much thought never do.

• His principles basically revolve around personal determination and will power.

• Hill suggests you write a statement of how much you want to earn, what you’re willing to give up to have that money, what your plan to get that money is, and to repeat that every day morning and night. 

7 most powerful emotions:

Desire, Faith, Love, Sex, Enthusiasm, Romance, Hope

7 most negative emotions:

Fear, Jealousy, Hatred, Revenge, Greed, Superstition, Anger

(apply and use ONLY the positive. Letting any of the negative ones in will keep you from having power/success)

Your 3 worst enemies:

indecision, doubt, fear

People have 6 basic fears. Fear Of:

• Poverty
• Criticism
• Ill Health
• Loss of Love
• Old Age
• Death

Overcome these fears if you intend to be successful and have all the riches you desire.

This book really had a profound effect on me. I’ve listened to it twice since last Tuesday. I suggest you pick it up!

I have this on audiobook if you want it. It was worth the listen.

What did you take away from this book?

 

 

What is Network Marketing

In addition to being a CPA with an MBA and a certified fraud examiner my mom is also a professor of business at University of Arkansas-Fort Smith.

This discussion of network marketing (commonly referred to as MLM, multi-level marketing, or distribution marketing) appeared in her course material that she taught her students (from chapter 15) and I wanted to share it with you all.

Network marketing is a very profitable and viable business model that depends upon the outside sale of the corporate office’s product or services via independent distributors.

My comments appear in italics.

Some popular network marketing companies are: Mary Kay, Avon, Pampered Chef, Pre-paid Legal, and many more.

Did you know these are network marketing?

MULTILEVEL MARKETING

Multilevel marketing often doesn’t get the respect it deserves in marketing literature.

When multilevel marketing companies succeed, their growth is often unbelievable.

At least six multilevel marketing companies have reached the $500 million level in sales.

Multilevel marketing companies work like this: The founders begin by recruiting a few good people to go out and find managers to sell their products(a FREE SERVICE in our case) and to recruit other supervisors. (also known as distributors or small business owners).

These supervisors then recruit additional salespeople.

That is, 20 people recruit 6 people each. That means 120 salespeople. Those people then recruit 6 people each, and you have 720 salespeople.

If in turn those people all recruit 6 people, you then have almost 5,000 salespeople who are all selling things to outside customers.

All supervisors earn commissions on what they sell as well as on what everyone under them sells.

When you get thousands of salespeople selling for you, commissions can be quite large. One company promotes the fact that 1% from 100 salespeople is as good as 100% from one successful salesperson. Companies often add new products or expand to other countries to keep a continuous growth pattern.

Distribution under multilevel marketing is relatively easy. Often the salespeople will carry inventory in their own homes and deliver products as ordered. Many companies also offer direct shipping to customers using UPS or other delivery firms.

Marketers cannot ignore the success of this sales and distribution strategy. Nu Skin (a seller of health and beauty products) alone will soon have $1 billion in sales. Looking for more growth, the company started a new division, Interior Design Nutrition, to make and sell vitamins and weight control products. Amway, perhaps one of the most well known multilevel marketers, has chosen the international route for growth; recently, its sales of home and personal care products increased by over $1 billion in one year.
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Taken from: http://highered.mcgraw-hill.com/sites/007310597x/student_view0/chapter15/casing_the_web.html

 

Owning a side business

Are you involved in a network marketing program? Some network marketing companies include: Amway, Mary Kay, Passion Parties, Pampered Chef, Avon, etc.

Here’s a list of just SOME of the business expenses you can claim on your taxes. This list comes from my  CPA who is also a certified fraud examiner:

THINGS TO CONSIDER WHEN STARTING A SOLE PROPRIETORSHIP

Select a name for your business

Open a checking account under your name DBA the business name

Deposit all income into the business checking account

Write checks for as many of your business expenses as possible and save all receipts

If you pay cash for expenses, get a receipt from the seller. If hand written, be sure it has the date, the seller’s name and what you purchased

Write down your vehicle mileage when you start your business and again on December 31 of each year. You will be able to deduct a % of your total mileage without gas receipts and a % of your car loan interest

If you entertain clients, get a receipt and write the name of the person at the event as well as a short description of what business was transacted

You can give business gifts to your clients or potential clients with a value of $25 or less per client per year

You are allowed to deduct/depreciate office furnishings, equipment and supplies

You can deduct magazine subscriptions, books and membership dues that relate to your line of business

You can deduct bank service charges and check printing charges

You can deduct rent and utilities for your business and/or storage

You can deduct accountants consulting fees and attorneys fees

You can NOT make donations to charitable organizations and deduct them as a business expense unless they are advertising, ie, You pay for an ad in a school yearbook.

You can deduct floral arrangements that you use in your office as well as other decorations

You can provide coffee, etc to your clients and deduct the cost

If possible, use separate credit cards for business and personal purchases

Long distance phone calls are deductible, but in order to deduct the base rate, you must have two lines into your home.

Cellular phones and the calls are deductible

Internet provider charges are deductible.

(This list is not all inclusive. There are numerous other tax deductions available.)

DIANA PAYNE, CPA, MBA, CFE

If  this post was helpful please comment or share! Thank you!

 

The Little Red Book That Changed Everything

Recently I was encouraged to read Jeffrey Gitomer’s “Little Red Book of Selling” by a friend who was doing business to business sales at 100% commission

While much of this book is more directed towards someone who closes major deals, etc. I learned a lot from it and wanted to share it with you guys.

It changed everything for me because it made me think about business from a perspective that was different from my own.

A few tips I picked up:

#1 changed my voicemail from the boring “Sorry I’m not here. Leave a message…blah-blah-blah” to something more exciting. If you have my number check it out!

#2 decided to join a local Toastmaster’s group. I was voted in to my local club Wednesday and look forward to the enhanced speaking skills I will develop.

#3 have looked into what types of free informational speeches I can give at my chamber of commerce. I’ve been a member for a few months now.

#4 continued to ask people for their business.

#5 worked on my business cards.

#6 learned to go above the “fundraising” person straight to the board members with fundraiser proposals.

#7 made contact to join a local charity event’s board of directors

While this list is short it is super important! Anyone who cares about their business or sales performance needs to check out this book because it has very helpful information that could very well change your financial future.

Also be sure to pick up the author’s other books- they’re fabulous!