The titles Network Marketing / Direct Selling / MLM can make some people run to the hills! I put my hand up here – guilty as charged! I ran too. I wanted absolutely no part of any money-making “scheme” that required me to try and offload my products to my friends and family with my income relying solely on how generous they were! My notion of what Network Marketing actually is was completely outdated and incorrect. Oops! I decided to get educated and learn more about this type of business, after all it is the fastest growing and most lucrative way to do business in this modern world.
Some people are really good at running their Network Marketing business and others haven’t worked out how to just let word of mouth do the talking :/ I was basing my own conclusions about NM from previous awkward experiences where I felt guilted into buying products to help a friend out (I find it hard to say no), attending countless parties where there was “no pressure to buy” but there really was, being completely spammed on social media or being invited out for a coffee catch up with an old friend only to be ambushed with a full blown sales meeting instead. Ouch! It makes you feel like you’re just a number and a little bit used. I bet some of you have had similar experiences over the years!
Network Marketing is not supposed to be like that at all! If you want to do this as a business style, you really need to study how to do it. Just like running a retail shop – you can’t just jump right in without any clue. A bit of research goes along way and protects your relationships too! Unfortunately anyone can jump head first into Network Marketing and pushing their products. Being skilled in this type of business structure is important to your success! I have a list of helpful sources here.
According to FORBES: “Many of the longest standing organizations in this country have this business model. MLM is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing.
These companies empower those who sell their products to actually establish their own businesses, selling the products. This is very attractive to many entrepreneurial-minded people who do not want to have a boss watching over them but also want some pre-established structure and support. Most MLM organizations provide a very robust infrastructure and great training as well as impeccable rewards (hello free cars and trips!).” – Forbes
The layman’s term for Network Marketing or Direct Selling is simply “WORD OF MOUTH”. You use the product, people ask you about it, you share with others how the product has helped you! This should be easy to do because you should have chosen your Network Marketing company based on a product that you are absolutely so stoked about it that you can’t contain your excitement (genuine excitement which comes from a place of wanting to HELP people by using what you are recommending!), then if they decide to go with either the product or start their own business then the company you work for gives you a commission for your referrals. That’s it! Simple. If the product is amazing and you have thoroughly researched and tried on yourself before you start your business then you will have no problem with people wanting to buy it also.
Did you know that you and everyone else on the planet are already a Network Marketer but just not getting paid for it? You recommend a funky restaurant to a friend, or an awesome movie, your fab baby carrier, book you couldn’t put down, luscious makeup that makes your skin glow, kid-friendly holiday resort, airline with amazing customer service, etc. Recommending things to people is Network Marketing! So why is it that people don’t mind those types of recommendations, but as soon as you make some referral money from your recommendation people run for the hills?!
Let me explain…..
- Trust: are you just trying to make some money and don’t care about the product, or are you genuinely a huge supporter of what you are selling and so stoked with it that want to share it with the world cause it is THAT GOOD? This is why you should use and fully experience whatever you are selling first…for a good amount of time before you decide to take it up as a business.
- Spammy: do you spam your social media with adverts every single day and surprise your dear friends with a pushy sales pitch when it was supposed to be a friendly coffee catch up? Most people don’t like to feel tricked or pushed or guilted. If your product is incredible and you are passionate about it, then people will be interested. Let them know what you are doing, pop in a few reminders on your social media to educate others, and then leave them alone. They know where to come 🙂 Excitement is contagious!
- The structure of the business (e.g. Pyramid Scheme): Don’t get me started on the phrase “is this a pyramid thing?”. Everyone is so afraid of this common shape and no wonder why! In the past there have been illegal pyramid schemes where there is no product being sold and well-meaning people have invested lots of money into the “business” with the promise of making millions. All that happens here is the few people at the very top make the big bucks and you are left in debt waaay down the bottom of the chain. That’s a pyramid scheme and no one wants any part of that (except for the crims sitting pretty at the top). Some pyramid structures (not schemes) are not all bad though and are in our everyday corporate world which includes education, restaurants, hospitals, chain stores, etc. You are probably working in a pyramid business structure right now: owner, manager, supervisor, worker….. yep! A good Network Marketing business will have you at the top of your own business…you are the CEO of your company! The people who sign “under” you are also their own CEO and can surpass your income if they want to. You don’t just sit back and let the good time roll while they make you rich. If you want to succeed and reach financial freedom, you also have to work on your business. Compare this to working your butt off at your regular job and you get paid the same. With Network Marketing, you work your butt off and you get paid for what you put into it. Fair I say! See the image below for more detail on how Network Marketing or Direct Selling actually looks:
The yellow spot is the business owner. The red is who the business owner brings onto their team. Blue is who the red brings onto their team (the red is then the yellow dot in their own business), etc, etc. See how this is not a pyramid?
So really, Network Marketing is not a business structure to be afraid of. No more running people! It is a legit, highly successful and freeing way to run your own business and not have a boss standing over you. It is steadily increasing as the most effective way to do business globally. After all, with social media now we can run our own successful business with babies on our hips, in our pjs, travelling, or on the side of our current job (which ideally you won’t need after a while!).
I’d really recommend looking into Network Marketing for yourself and leaving all your past thoughts behind. It really is a smart way to do business!
I’m always up for questions or a chat, so feel free contact me!