All Entries in the "Choosing" Category

You Are What Your Upline Is

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Looking back, I realized a lot of my fellow marketer presents very similar business habits as their upline, this makes me come to a conclusion, you are what your upline is.

If your upline has got very good business practice and conducts, most probably he or she will pass on these good traits.

But if your upline is one of those unscrupulous marketer that gives inaccurate information to make sales, and mislead people to join his network, you may become like that in future.

There is this person I know who likes to buy fake branded items such as bags and pens to impress people to join his network and he makes claims that it is easy to make money in the business. He gets all his downlines to buy fake branded items to impress prospects instead of
convincing people to join the company and his network based on the quality products and business opportunity.

This behaviour is evident in many of his downlines, and the result of this behavior is that, he managed to recruit many downlines initially, but once they realised that it is not as simple to make money in this line, they leave.

This creates a viscious cycle or recruiting and people leaving and recruiting.

MLM Network Marketing is about sales, recruiting, and training to establish a solid network of sales eagles to generate sales enough for everybody to make a stable passive income.

That is why we keep emphasizing the importance of finding the right upline. If you are serious in building a serious business in MLM Network Marketing, you need to get your basics right.

MLM is all about leveraging the power of people and time, training and managing a group of strong network that can help you generate a good passive income without you doing anything at all.

Another phenomenon that is happening in MLM is company hopping. Some marketers are attracted by the earning potential of companies, after recruiting some downlines in a particular company, upon chancing at another better opportunity, the upline convinces his whole network to hop over to the new company.

This only allows the upline to earn the most money. But for the downlines doing sales, it actually affects their credibility and customer service standards. After awhile, you can start to see the downlines’ earning reducing and they exit the industry for a full time job.

Income will become instable, and you definitely need to keep on with the company hopping until finally you decided to exit the industry of start to do serious marketing.

This is one of the reason why MLM Network Marketing got it’s bad name. Companies like Amway, Forever living, Agel have got great marketers like Randy Gage.

If they did not stay in the company long enough, do you think they can have such achievements today?

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How to Avoid Home Business Scams

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The Compensation Plan

There are many types of compensation plans, roll-ups, bonuses, matrices, commissions are just a few. What are your ROI (returns on investment). How good is the compensation plan, alwasy compare them to other online companies where possible.

What are your ROI (returns on investment). How good is the compensation plan. There are many types of compensation plans, roll-ups, bonuses, matrices, commissions are just a few. There is no one compensation plan better than the other, it depends on what it is you want to get out of the business. With some opportunities the compensation plans mean high numbers of potential customers or clients, which in turn can be costly to get them in the first instance.

A question to ask yourself is, how quickly can I make back my start up costs through the compensation plan shown. i.e. if the business has cost you $2,500 and the compensation plan is either a % of the sales of the products, or a commission to bringing in other members of your team, how many potential prospects will it take you to pay back your start up costs.

Products

There are various types of products. They could be downloadable e-books, software or courses which do not require storage space or physical products such as nutritional products, cosmetics which would need physical space to store them. How are you expected to retail them. For physical products normally word of mouth, or demonstrations, or sampling help to sell those types of products. They may be limited to which country you are allowed to sell them in, due to the trade licence laws on foods or products in some countries. For downloadable products, there are no such restrictions worldwide so this means that these can be retailed online anywhere globally.

Look at the how much it will cost you to become either ‘an affiliate, or Franchisee, or Distributor’. There is the initial sign up costs which need to be bourne in mind. How much money have you got to invest into your own home business? make yourself a budget and look for an opportunity which is within that budget.

Bear in mind ongoing costs, all businesses have ongoing costs, but make sure that these are listed up front, so there are no surprises for you after you have ’signed up’. There may be a time lag, from when you purchase your business to the income coming in. Be prepared to have a learning period where no income will be coming in straight away, unless you have people who you know will be interested in your products right away.

Bear in mind ongoing costs, all businesses have ongoing costs, but make sure that these are listed up front, so there are no surprises for you after you have ’signed up’.

Get a more rounded impression of the company. Do they offer a presentation that you could watch, if so make notes while you are going through the presentation.

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Spotting the Network Marketing / MLM Scam

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Network Marketing and MLM business have immense potential be it online or offline. It also has the potential to let you earn high commissions and income.

Due to this, there are many MLM and Network Marketing Scams around, online and offline. Thus it is very important that you choose the company very carefully.

Here are some guidelines about choosing a Network Marketing / MLM company.

Background Study

You probably want to check out the history of the company, and background before you join. A reputable company should have a good length of history in operation in this industry. And what was the company doing before this. It may not be the main consideration factor, but it is good to know.

Products

Look at the company’s products. As a rule, an excellent product is the basis of your MLM business. The product will ensure you have a stable and long term income because it will appeal to your customers and they will have repeat purchase.

Companies with no clear product are usually running on a money-making scheme and appear like a scam. In the long run, you won’t be able to sustain your income and the company may wind down due to the reduction of incomers.

Compensation Plans

The most important thing that you should assess a company before joining is the compensation payout. Know how much the company is giving out as commissions. Find out the maximum commission from one sale paid out as commission to distributors.

Typically, the Maximum commission paid out to all the different levers should be around 50-60%. Anything above 70% is good for the short term, but the company may be over paying. The company may not be able to sustain for long.

And anything below 30% should make you think where did the rest go to?

Accreditation

The last and final thing you can check to reassure yourself that the company is safe to join is the number of accreditation the company has. The more accreditation the company has, the more reliable the company is, thus more likely to sustain a longer time.

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