Network marketing has been on the rise in recent times. Virtually any product or service that can be bought and sold is marketed through the MLM business model. Although the industry often touts itself as the solution to financial prosperity for all, the truth is that many MLMs don’t last long and many distributors have seen their dreams of financial freedom dashed due to the failure of the MLM company they run. They had. pin all your hopes.
While it is true that many MLM companies fail to make it, the fact is that there are also many network marketing companies that have stood the test of time.
This article examines the 7 critical cardinal factors required for a successful network marketing business. My observation and research confirm that most successful MLM businesses have all 7 ingredients in their business operations, while those that have failed lack some or all of the critical requirements.
It is important that you review your MLM opportunity for these structural and cardinal requirements before you invest a lot of emotion and time into the business..
#1. A good MLM must have a great replicated site with a lead capture page designed specifically for your network marketing company
This is a non-negotiable ingredient of all successful MLM businesses. In the new competitive market, if your business opportunity doesn’t provide a replicated site that has a lead capture page with an effective autoresponder service, it probably won’t be around for long. Gone are the days when dealers had to go find and buy these tools. This must be part of what the company offers from the beginning or you may not have the opportunity to compete in the future.
#two. A good MLM must have a free report or brochure designed for your network marketing business opportunity
This report or brochure should explain the features and benefits of joining your MLM opportunity. You should focus on the support and resources available for recruiting new distributors; explain the company’s Products and Compensation Plan Report/Brochure must include testimonials from successful people in the company.
#3. The system of a good MLM company must have AN EMAIL FOLLOW-UP SYSTEM
The truth is, most people don’t act immediately after they’ve opted in to review your opportunity or report. Most people need to see a marketing message at least 7 times before taking any action. Therefore, a good MLM company should have an autoresponder email tracking system that continuously markets your leads for you. These emails should be professionally worded and contain strongly worded sales copy.
The company’s lead capture page will direct them to the autoresponder which will then start sending the prospect carefully crafted follow-up emails on a scheduled basis without you having to do anything. This has become a staple of all successful network marketing businesses in recent times.
#4. A good company must have a continuous feedback system that uses the fear of loss
Research shows that more people buy out of fear of losing than out of the possibility of winning. A good company’s system Causes prospects to fear that they may lose a new prospect’s commission forever if they don’t upgrade. It also shows them that there are negative financial consequences if they don’t take action now. This Fear Of Loss concept should be an integral part of the email tracking system.
#5. Your company must have a good product or service that people really want.
While people join MLM because of dreams of making money, the Product still has to be good to sustain the business long term. It must have a useful purpose that meets genuine demand and must be able to sell even if there is no compensation plan attached.
In fact, if your MLM does not have this particular ingredient, there is a 100% chance that the government will determine that it is a pyramid scheme. The product itself must be value for money and distributors must be able to enjoy it even if they are not yet earning significant revenue.
#6. A good MLM company should provide strong support to their distributors
Many people have the enthusiasm to make money with MLM, but lack the proper training. A good company should be able to provide training and support on a regular basis.
Many people joining Network Marketing these days are inexperienced and arrive with unrealistic expectations of financial riches. They need to be trained and redirected on how to make this happen from their uplines and the company.
The most successful MLMs now have a strong training site and have very active leaders involved in training.
#7. A good company must have an excellent compensation package
Many people are looking to generate extra income fast. A good MLM should provide opportunities for both big leaders and small distributors to make money fast. The compensation must not only be simple for the average person to calculate, but also easily attainable.
In these days of massive promotions by many MLMs in the exploding internet market, people need to see and touch some compensation quickly before staying with any company for more than 2 months. If your company’s compensation plan doesn’t have a significant fast-start bonus, chances are that distributors won’t be attracted to it in the long run and you’ll fail. People are no longer buying into a future of more than 3 months before they start seeing money.