What is network marketing?
I’ve heard the network marketing business called many things, over the years. What kind of business is network marketing, really? Here are some of the answers I’ve heard. We’re in the relationship business. We’re in the lead generation business. We’re in the recruiting business. We’re in the duplication business. We’re in the, well, whatever kind of business you want to say that we’re in.
All of those are sort of true, but the bottom line is that we are in the sales business. I can hear an audible groan out there. Embrace this truth! Say it loud and say it proud! We are in the business of selling stuff.
I know you’re saying, “I don’t want to sell anything.” Yeah, I know. Have you looked at your monthly check lately? Did you even get a check last month? If you’re not selling something then you’re not getting paid. Which explains why you didn’t get a check last month.
We get paid when the company’s products sell. All other “money making activities” are done in order to increase the sales of their products. That’s the hard truth!
One might argue that we are in the recruiting business. After all, we do get paid for recruiting others into our business. In some cases that’s true. You can get paid, if someone joins your business. That is if your company charges a high enough fee to sign up and deems you worthy to receive some of that fee for doing the work of finding that new distributor. There are some companies that charge no sign up fees and there are many companies that charge a low, recurring, annual fee to be a distributor. Those companies do not pay you to recruit.
To those of us who do get paid to recruit, I would say that the payments we get are just 1 time payments. As a network marketer, I am looking to develop a residual and recurring income. I hope that your are too!
You could, in theory at least, recruit until the cows come home and if no one is buying or selling the products, you won’t make a thin dime! I would say that we are sort of in the recruiting business.
Have you noticed that you don’t really get paid for your efforts?
You don’t get paid to talk to those 5 people per day. You don’t get paid for generating a lot of leads. You don’t get paid to qualify those leads. You don’t get paid for showing the business plan. You don’t get paid to follow up with them. You don’t get paid for answering objections. Most of these, so called, “money making activities” don’t make you any money.
Just look at your check next month. Are there any lines that say that you got paid for any of your efforts? No!
You’ll probably have lines on there for your personal sales and the sales of your downline. That’s where the products would have been sold. You’ll get paid for the products that you sell and then you’ll get a small portion of the total sales of your team.
How important is selling the products, to your company?
It is so important that most companies make sure that every distributor is at least buying the products, for themselves. They invented the Autoship program. Yes, if you want to receive a check from the company, you have to be buying a certain amount of their products every month, month in and month out. There are some companies that do count your sales to other people, outside of the business, as part of your personal volume. This means that you don’t have to buy all of the products yourself. For the most part, this has eliminated those MLM horror stories about people who have garages full of products that they can’t sell.
To sum this up:
Most of the “money making activities” that you do, just give you the potential of making money. That’s okay and we should be doing these activities, like generating leads and qualifying them. Those activities are important.
You just won’t get paid for them until someone buys or sells the products!
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