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From the Desk of the Editor With this issue of MLM Woman Online we are starting our third year of publishing the newsletter on the Internet. In fact with this our 25th issue, we have now published over 100 MLM related articles that are all available to you with just a click of your mouse. I think I can safely say that you now have access to more information about building a successful MLM business right here on MLM Woman, than on ALL the other MLM related web sites on the Internet combined. That being said, I realize that this newsletter is a one-way communication from the editor and the writers to you. And that many of you have questions, concerns and even information you would like to share with other MLMers. But you did not have a forum to ask these questions and share your concerns and information. So, as many of you know, I host a bulletin board called MLM Talk, to give you such a forum and to give you a voice. If you haven't visited the site yet, please take a look and share your thoughts. We're open 24 hours a day. Click on the link below. Yours in Success!
The Dollars and Sense of Network Marketing
By Marla Berchard
Are you passionate about owning your own business? Do you have an extra $75,000 + spare change jingling around in your pocket? If you’re like most folks, the answer is “no.” If you’ve ever looked into getting into business for yourself, whether you’re buying an existing company, looking at a franchise, or going retail, you’ll know that’s pretty much the average size of the investment you’re looking at. Don’t despair! It is possible to be your own boss on a shoestring! NETWORK MARKETING MAY BE FOR YOU Once you’ve determined you’ve got the basics for entrepreneurship, you should know that a network marketing home-based business is a viable option which has many advantages and benefits over the more “traditional” business route, and can be launched on a shoe string budget of around $250. To optimize your potential for financial success, it is imperative to find a company that has these four essential elements in place: 1. A compensation plan that rewards part-time distributors and full-time professionals, but not at each other’s expense. 2. A stable company with a potential for longevity, properly capitalized and with adequate resources, that provides outstanding customer service; and a management team with a clean track record, that believes in putting part-timers quickly into profit. The mindset of the company owners is paramount to the way you will be treated as a partner. 3. Superior quality, in-demand, competitively-priced, consumable products people want and use, that get results, and with enough variety in the product line so that distributors will re-order each month. 4. An easily duplicatable, turnkey training system for distributors, and easy access to top company leaders for training. WELL BEGUN IS HALF DONE! Assuming you have found a company in which ALL FOUR essential elements are present, CONGRATULATIONS! - consider yourself extremely fortunate! One final ingredient which, when you find it, will be as yummy as the “icing on the cake”, and that is, a good SPONSOR. Never underestimate the fact that behind every successful network marketer is a successful mentor(s). Take the time to select a sponsor whose commitment to you will not end once the ink is dry on your distributor application. When you find a sponsor you like, realize that this is a long-term “relationship” and be prepared to have your paradigms challenged and your capabilities stretched. HOW DO I KNOW IF I’M PAYING TOO MUCH TO GET STARTED? All right, let’s get down to dollars and cents and the real costs you can expect to incur during the first months of starting your business. Before we do, however, let’s talk about what could be considered “red flags”. If, in your initial evaluation of a company, you are advised by the company or upline to purchase any large amounts of inventory, proceed with caution. You should be able to get started with a business/training kit of less than $100, and a small start-up order of products for yourself of no more than $50 - $150. If the company or upline pressures you to buy inventory, multiple product paks, or pay a high fee of some kind, you might be what is called, “front-end loaded”. Be wary if you are required to purchase products or inventory in excess of $500 to a few thousand dollars. Find out how much product volume each person is required to consume each month to qualify for commissions. If you can, find out the approximate income level of some of the company’s top income earners, and what the maximum dollar volume each person in their group consumes monthly to produce this bonus cheque. If it is at least $100 and not more than per $200 month, you can be reasonably assured there is no front end loading going on and part-time people are not getting hurt. You want ongoing, residual income, so make sure regular earnings are not coming from “one-time” enrollment bonuses, “coding bonuses”, or “special promotional bonuses” for recruiting. Question why you might be told to “stock the shelves of your store,” when the company provides product brochures and catalogues to order from, and if the company automatically ships their products to you and your customers as ordered, or by “autoship”. Beware of companies and upline who strongly urge you to purchase high-priced, non-consumable items “up front”; “business centers” or “investments” without receiving any products for your cash outlay. Don’t believe the promises of “big profits for very little or no work”, or of “having your business built for you.” Nobody gets something for nothing, and although network marketing is a simple business, it is NOT easy. It does require dedicated, consistent hard work like any legitimate business, and a minimal commitment of at least 10 - 15 hours per week. Run, don’t walk, if you hear the words, “massive spillover” or promises of “we doing all the work for you,” as in some “downline building clubs”. Historically, these don’t work. Trust your own feelings if, from your first meeting, you feel the upline or person representing the company is shifty or untrustworthy. Your intuition is often dead-on in these kinds of situations. YOUR INITIAL START-UP COSTS You should expect to invest around $100 to $250 for several products, a training kit including promotional materials, and perhaps some “warm” business leads, if you wish. You will also have to factor in some money for postage, telephone expenses, and office incidentals. If your company’s plan will enable you to have the cost of your product paid for when you sponsor three people, that is good. Look for an ongoing personal volume requirement of at least $100 per month in order to produce a serious bonus cheque. If you can get into profit with only four people in your group, that is great. If you can earn between $700 - $900 on a small group of around 20, that is excellent! This is an easily do-able plan for a part-time person (90% of people who will join you) who will BELIEVE they can do that! FORECAST FOR YOUR FUTURE Do the math and project what your income would be with varying numbers of people in your group. Decide how much money you would like to make within a 3 month, 6 month, and one year time frame and work with your sponsor to develop a game plan. Write these goals down and ask your sponsor to help you be accountable for achieving them. Fully understand exactly how your company's pay plan works and what you will have to do to generate the income you desire. Of all four essential elements, evaluating the company's pay plan is THE most important. Think of the times you worked for someone else. Wasn't one of your most burning questions how much you would be paid? Even though you are now your own boss, it is still the most important factor to consider when evaluating a company. We teach a simple, exact formula for determining how much you will be paid in any network marketing company pay plan. (More details later.) Companies that pay $700-$900 on a small group of people will greatly increase your distributor retention. Understand the deeper levels of your plan and ask your sponsor about leveraging strategies. If your company’s play plan allows you to produce significant bonus overrides on the fewest numbers of people, you will find it much easier to build and maintain a downline. Find out where the highest percentage of bonus overrides are paid. If it is within the first three levels, then you have found a very distributor friendly company. You should be able to help your people generate a positive cash flow of at least $300 within 60 - 90 days, using this type of plan, and when they do, GREAT NEWS, they probably will not quit! Remember, too, numbers on paper are only that. Nothing translates exactly the same in real life, but if your projections are realistic and believable, you will avoid disappointment and discouragement. SAVE MONEY, TOO! Not only does a network marketing home-based business allow you to start up a business with unlimited income potential for only a small investment, but by working at home, you can now start to save money! How? Consider the money you’d spend on gas, commuting to work, or by not needing to buy a career wardrobe. How about before and after school care and baby-sitting for working Moms, not to mention the priceless value of being available to your children more often. You will save money with tax benefits so be sure to check with your financial advisor to ensure you maximize your advantages. You will also gain control of one of the most highly sought after commodities - your time! Plus, you can bank on the financial security and retirement flexibility that comes from a steady income stream built on solid business practices. And why not lighten up and have fun with the lifestyle “perks” that having an extra $500 to $1500 and more per month brings, too! THIS IS JUST THE BEGINNING You can even earn an average full-time salary on a part-time basis. In fact, in a recent survey, the average American’s annual salary was $26,000. Compare this to the average home-based business household salary of $50,250! And, if you are highly motivated to earn even more, you can! If you truly possess the desire and motivation to succeed and are willing to work to achieve it, then you absolutely deserve to have it all! So, while other business owners are hassling with leases, employees, equipment, payrolls, franchise royalties, inventory, high indebtedness to the bank, and more, you can smile inwardly. Why? Because you’ll know that all it ever really cost you to get started and be your own boss in network marketing, enjoying all the benefits “without all the headaches” was a few hundred dollars! Marla Berchard is a full-time network marketing professional with her husband Henry. They believe in the "golden rule", and in educating people on how to make proper business decisions. For her free report, "The Simple Formula For Evaluating Network Marketing Compensation Plans", email to: mbhb@home.com or write to 2028 Carrick Street, Victoria B.C. Canada, V8R 2M6.
Why You Need a Web Site By Kevin Nunley In the past I've told people, "You don't need a web site unless you are selling to people all over the world." That is no longer true. Before the year 2000 half of all Americans will be using the Internet. That is a LOT of people spending billions of dollars. With all those people on-line everyone should have a web site, even if it is a very small, simple one. Places like click2site.com offer free web space. "But I have a neighborhood window washing service. Why would I need a web site?" someone says. Internet search engines are getting much smarter. Your customers can type in some search words, your business name, even the name of your town and get information on products and services they're looking for. Having your own web site allows you to get listed on search engines. It's just like having an ad in the Yellow Pages, only your web site can be completely free. Keep it simple with contact info, listing of services, and helpful tips. Get Kevin's new book "101 Best Biz-Tips, Powerful low cost ways to promote your business!"$14.95 at http://www.DrNunley.com Kevin provides affordable advice and copy writing, Kevin@DrNunley.com or (801)253-4536.
Setting Online Goals Many people jump onto the 'Net, only to have their hopes dashed - and fast. What they don't realize, is that marketing on the Internet takes time, and a solid PLAN. You have to set your goals, and know how to attain them. Getting a web site and letting it sit there is just about as effective as buying your business cards, and putting them in your top desk drawer. No one will ever see your business cards if you leave them in your desk, just as no one will see your site if you don't tell them about it! But you have to know *how* to get people to your site, and you have to have a PLAN! Just as you set goals and have a business plan offline, you must do the same on the Web. Being realistic is important. And so is shooting for the stars! Start (today) by writing down your goals for tomorrow, for 3 months from now, and 1 year from now. For example, your goal may want to get X number of visitors to your site, or a certain amount in sales directly from the site, or maybe get X number of advertisers. The next step is to write your plans to reach each of those goals. Specific ideas are best, while just saying "advertising" or "marketing" won't do much good. You need to have detailed ideas. Will you advertise in email newletters? Or will you try banner ads? Ad swaps? How about writing and/or publishing your own e-newsletter? Online publicity? You'll need to discover what works best for you. You need to be: Flexible, Persistant, Optimistic, and a Knowledgeable Marketer. One of my favorite things about marketing on the Internet is the simple fact that it's a growing and learning process. But, if you wait until things get "figured out", you might just be retired! That does not mean you cannot be successful here - Just the opposite is true! You just need to set goals, and have a plan. Julie Frost is the publisher of Sage Web Marketing, a free, biweekly Web marketing email newsletter. Subscribe today by visiting her web site at http://www.sagewc.com/ Sage Web Co. - The Web Marketing Source for Small and Home Based Business Owners.
Focus on the Critical Behaviors
To Build a
An article by Sherry Herman Like many people marketing on the WWW, I spend hours every day on the Internet -- reading ads and offers from other people, checking out interesting and informative Web Sites, corresponding via e-mail, as well as seeking techniques and tools to promote my business. I usually enjoy myself and increase my knowledge of the Web. Too bad that in terms of effective marketing, I am totally wasting my time. Unfortunately, not one minute spent doing these informative, educational, and pleasurable activities counts towards what must be done on a daily basis to successfully promote a product, service, or networking business on the Web. An Internet venture - like any business or job - can gobble up all your time and energy...unless you keep your perspective. The task expands to fill the time you have to complete it. Only by FOCUSING ON THOSE CRITICAL BEHAVIORS THAT INCREASE YOUR BOTTOM LINE, can you keep your life in balance. Avoid the possibility that some day, when there is a power failure, you look around only to find yourself alone in a dust-ridden room; with unrecognizable, icky things growing in the refrigerator; the goldfish dead; friends and family long gone; the car towed; and a note on the door from a stranger cursing you for neglecting the dog. You can avoid this pitiful state. ---You can carefully and successfully market your business on the Internet in 5-10 hours a week. ---You can market it even better in 10-20 hours every week. ---You can be very successful investing 20-30 hours per week. To thrive on the Internet at all, you must focus on and do the CRITICAL BEHAVIORS. These behaviors are determined by your goals. Most likely, you want to market a product, service, or MLM. Here are the steps to help identify what the specific critical behaviors are for your business. Decide: 1. How many sales or new clients/members do you want every week? 2. How many leads do you need every week to make these sales or obtain these clients? 3. What actions do you take to get these leads? 4. When do you take these actions? 5. How often do you take these actions? 6. What are the results of each action? When you have identified the critical behaviors needed for your business to succeed, you simply repeat them over and over. ---Do more of the actions that work ---Keep testing to improve what works ---Modify or eliminate what doesn't work ---Follow-up with existing leads. ---Show benefits to your leads ---Close ---Repeat as often as necessary
Then Just Set Up A Schedule. Only those actions which bring in sales, clients, or new members count as critical behaviors. Powering up your computer doesn't count. Checking out your competition doesn't count. Organizing your office, desk or records doesn't count. Only the time that you invest in acquiring leads and closing them counts towards doing the critical behaviors. That's where you must invest your precious 5-10 hours or 10-20 hours, or 20-30 hours a week to build your business. You may do many additional things - you probably will have to at first - but don't count that as time towards doing the critical behaviors - because it isn't. Critical behaviors are those that add to your bottom line. Nothing else can count when you are tracking them and the time involved. Tom Hopkins, the master sales trainer, says that even champion sales people spend an inordinate amount of time avoiding doing what gets results. If you can avoid this trap, you can make money on the Internet and still keep a life. Tied in with these steps, is the concept of a pipeline. When they started putting liquid in the Alaska pipeline, nothing came out of the other end for quite a while. However, after the pipeline was filled - and for as long as they continued to put liquid in at the beginning (and for a, limited time afterwards) - fuel continued to come out the other end. To keep your pipeline full of inquiries and leads, take action to fill it every day. Eventually, you will have a steady stream of prospective customers and clients coming out the other end on a daily basis. Then, you must stay in contact with your leads. It takes from 4 - 8 contacts before most people actually buy a product, pay for a service, or join a networking company. There are many ways to generate leads. These include (but are not limited to): Classified Ads Free And Paid Your Own Classified Ad Site Ezine Advertising Giving Away Premiums Like Vacations, Greeting Cards, Contests, Drawings, Etc. Banner/Link Exchanges E-mailing (these are rocky shores, beware!) FFA Pages Search Engine Submissions Opt-in Lists News Groups All of these promotional methods work some of the time. Some are free and relatively slow. Others may cost you. If you have a low budget, or you want to test - free methods are great. Eventually, you will probably move to some forms of paid advertising. By tracking your results, you can determine which methods work best for you. Just remember that if one promotional method produces twice as much profit as it costs, this is a good thing. If you can tweak it so your method pulls three, four, or five times the profit as the cost, you have a real winner. Run with it! Those methods that work in free arenas, possibly will work even better in paid venues. Test small, then go large. One final suggestion. As much as possible, you want to automate what you are doing. If things run on auto pilot you can make money 24 hours a day, 7 days a week even while you sleep. There are a world of tools that are free or inexpensive that you can use to automate everything from submission of ads and URLs, to automatic response to and follow up of inquiries, to on-line acceptance of payment by check or credit card, as well as delivery of the product or service. E-mail me, and I'll be happy to send you a list of ones I use in promoting my business. Once your business is profitable enough, you can begin to outsource certain tasks to others. Keep your limited time focused on the critical behaviors. Pay a family member, a friend, or a local high school student to do some of the grunt work for you and free up more of your time. Remember, to keep your pipeline full and your business functional, you need to do four things every day: 1. Take steps to generate leads. 2. Stay in regular communication with the leads you have - develop a positive, good relationship with them. 3. Emphasize benefits to your leads. 4. Close your leads. The Internet is a very distracting place. There is no doubt that an excellent full or part time income can be made on the Web if you stay focused. You wanted a home based business to have both TIME and FINANCIAL FREEDOM. To keep your life in balance, stay focused on doing the CRITICAL BEHAVIORS, automate as much as possible, outsource what you can, and maintain perspective. Sherry Herman is offering to build your downline for F R E E. Find out more by clicking on the URL: http://www.freedom2ooo.com/force20/6482401.html Listen to her training calls by dialing: 918-222-7201 Ext. 201 Go back to the top of the page Back to the MLMWoman Newsletter Index
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