Direct selling and network marketing a brief history

Direct selling had always been a part of mans history. An ancient tradition that originated in man’s basic need to exchange goods and to communicate, as early as 2000 B.C the Code of Hammurabi, a monument of Babylonian law, protected the general welfare and integrity of the Babylonian direct seller, who was then referred to as the “peddler.” The Code stated that“the peddler shall swear the oath of God” if any enemy caused him trouble as he travels shall be protected. It also said that the merchant who sells the goods must be fairly compensated.

Treating Your Business Like a Business..

In my 6 years of experience in the network marketing industry I have observed one common mistake most new Independent Business Owners do.

People get into Network Marketing with the hope of earning money. The Business opportunity makes sense  to them, they signed in because  of what  they hear about people getting rich without doing anything (hype)  in there company ,So they  think that it will be easy. The concepts of “hope” and “easy” do not apply in a true  Network Marketing business model. If you want to be successful  YOU MUST take this business seriously!!!

What is Referral Marketing?

Referral marketing is also known as network marketing, and is by no means confined to the online world. In fact, it has its roots long before the World Wide Web. Some very large and successful companies were built, and continue to thrive, on a referral marketing model.
This is how it all works: a company sells products and services via a network of entrepreneurs instead of a traditional store. This means that the company is able to sell the products and services to customers at a reduced rate because of the lower overheads, as well as the ability for the company to grow at a rapid rate! The entrepreneur also has a much lower startup cost, with the benefit of the backing of an established company.
The company also encourages entrepreneurs to recruit other entrepreneurs, in order to increase the capacity of the company. The referring entrepreneur then also earns commissions on the products that the referred entrepreneur sells. If the new entrepreneur brings further entrepreneurs on board, the original entrepreneur also receives commissions on those sales – and so on. This is the multi-level or network component of the company

DELAYED GRATIFICATION

Most people entering the Network Marketing Industry think in terms of immediate GRATIFICATION and getting rich quick, that is why thy quit easily. that is why there are few who are truly successful in this business, In network marketing you have to think long term and not short term, DO the work today and earn the rewards tomorrow. The business is not a sprint race but a marathon race. Apply the law of the farm in your business. THE BUSINESS IS ABOUT PEOPLE NOT PRODUCTS IT IS ABOUT BUILDING A TEAM THE BEST POSSIBLE TEAM THAT WOULD SUSTAIN YOU FOR A LIFE TIME.
there is a saying that goes this way:
IF YOUR VISION IS FOR A YEAR PLANT WHEAT
IF YOUR VISION IS FOR 10 YEARS PLANT TREE
IF YOUR VISION IS FOR LIFE TIME PLANT PEOPLE

BUILD RELATIONSHIPS AND GROW IT INTO FRIENDSHIP; OFFER PARTNERSHIP; AND DEVELOP YOUR DISORGANIZATION THOUGH LEADERSHIP (In network Marketing your inventory is people)

One on one Business Presentation

With the use of the use of the six-step system:

·        Approach. . . . . . . . .  To gain rapport

·        Interview . . . . . . . . .  To identify needs

·        Demonstrate . . . . . .  To Show the Plan

·        Validate . . . . . . . . . .  To Prove your claims

·        Negotiate . . . . . . . . .  To work out Problems

·        Close . . . . . . . . . . . .  To ask for a decision

With This AID-INC  this would help you create a good business presentation.

When you introduce your prospect to your business opportunity spend a good 15-20 minutes getting to know them. Determine who they are and what they want.

#THIS WAY YOU CAN TAILOR YOUR PRESENTATION TO THERE NEEDS AND WHAT IS IMPORTANT TO THEM.

STEAMLINE SPONSORING

One of the biggest problems in MLM is attrition. Many distributors who join any network marketing company quit within the first few months, often without sponsoring anyone. Streamline sponsoring is very popular now with many distributors as it, helps build volume quickly and even people who join as customers can receive a check.

Working in Depth

A cardinal rule is that no distributors, no matter how successful or large his organization,ever quits personally sponsoring. However, it is also true that the responsibility to help those people in his down line succeed by helping them build their own organizations. For a growing business, the question is one of balance and priority. There is not enough time to do everything. Security and stability of a large business network lay in its depth rather than width. Conventional wisdom emphasize largely on the need for front line sponsoring.

Distributor Bill of Rights

1.     Distributors have a right to own and operate their own independent contractor business.

 The company and the government should recognize that a distributorship is an independent small business with all of the rights and tax benefits of any independent small business. By entering into an agreement with any company, each Distributor is entitled to specific and undeniable rights to protect and preserve immediate and long-term residual income.

Knowing Your Target Market First

To build a solid foundation for your network marketing business you must first identify your prospects. you must decide who you want to attract, know their needs and wants then offer them solutions.

Key things to look for when selecting a company:

• ESTABLISHED COMPANY 5 YEARS OR MORE

If the company is less than five years old - it has not yet survived the start up challenges that operate in many business.

 Look for integrity at the top and a strong competent management.

• THE COMPANY MANUFACTURES ITS OWN PRODUCTS

This ensures a steady supply and allows for a greater percentage of the product price to go to the networker.

• A UNIQUE PATENTED AND EXCLUSIVE PRODUCT LINE

Everything hinges on your products. They need to be exceptional to create loyalty for you and your company.

 Notice also that there needs to be a good number of products.

 Generally, companies offering only one or two products cannot generate enough volume to be profitable.

Passion : THE FUTURE BELONGS TO THOSE WHO BELIEVE IN THE BEAUTY OF THEIR DREAMS

The starting point behind every business idea is passion. for the entrepreneur, passion is the urge or compulsion to express your creativity by bringing something new into the world

something that you have daydreamed about for many years, something.... a hobby or a vocation... that excites and energize you to the core. you can't learn it. you can't buy it. you know it when you have it   

 (THE OLD GIRLS NETWORK)

THE UGLY TRUTH ABOUT BINARY PLANS

By John Counsel

Most “hot, new trends” in MLM compensation plans are nothing more than tweaked-up reincarnations — fancy new names with dazzling new packaging — of tired, discredited old barker’s eggs that companies trot out for another spin because they earn so much hidden, windfall profit from them.

Binary compensation plans are just re-hashed attempts to breathe fresh life into the notoriously-flawed 2 x 12 automatrix plans of the 1980s and early 1990s.

The 2 x 12 automatrix (or forced matrix) was the most unstable of all matrix systems. They were notorious for collapsing and taking thousands of people’s money with them.

MLM Products the first key to success in this business

Your MLM products are the core of your business and the foundation for long term residual income. Successful network marketing businesses are based around a solid product line that has lasting appeal in the marketplace. Without a foundation based on quality products, all you really have to offer in the long run is a money-making scheme. Opportunities built around mediocre products tied to highly-hyped compensation plans don't last, and should be avoided. Your products are the foundation of a strong network marketing business, and the compensation plan is the driving force that makes everything work.

The Importance of Qualifying Your MLM Prospects | Network Marketing Tips For Beginners

If you are still fairly new to network marketing the following tips should place you in the right frame of mind:

Industry Definitions

ACCUMULATED PERSONAL VOLUME (APV)
A Distributor's personal volume from the day he or she becomes a Distributor to present. This value does not clear or reset each commission period; it continues to grow.

ACTIVE
Only Active Distributors may have earnings. A Distributor is considered Active when they have at least__________ Personal Volume and/or ___________ Group Volume. Some plans impose other requirements as well.

Network Marketing Industry Definitions

 Network Marketing has its own Vocabulary. which is use in business, here is a quick and handy glossary for  you to know