Network marketing is a very powerful yet simple business model. When it comes to learning how to make money in network marketing it is actually a very straight forward process.
I did not say it was easy, but then again I did not say it was hard. In the end making money in this business is neither easy nor hard, rather it is accomplished through very straight forward methods.
There are 2 main methods of making money in network marking and depending on how you build your business there is also a potential 3rd
In this article we are going to look at all 3.
Method #1 – Selling Products.
When you join a network marketing company you are becoming a rep for that company. This allows you to actually retail or sell their product. Whether that is a vitamin, weight loss product, skin care product, juices, magic potions whatever…
Regardless of what the product is you are able to sell the product.
There are two ways to do this:
1) The first method would be by playing store AKA retail. You can buy the product directly from the company for whole sale prices and then you can mark it up and sell it to whomever you like. There is ok money here, nothing great. I have never done this and never recommend it to my team.
Now having said that some companies model are set up where retailing the product is worthwhile. Party planning companies come to mind.
If you decide to go this route just be sure to check your company’s policies and procedures regarding what price you can sell their product for. Usually they will give you a suggested retail price.
2) The second method which I definitely prefer and recommend you do is sharing the products with your contacts, getting them interested in the product or service and then getting them on what is referred to as an auto ship.
An auto ship is where your customer basically sets up a customer account with the company. A customer account would be instead of a distributor account.
With a customer account they can go in and order whatever they like, whenever they like and then they can also set up the auto ship order; which is simply a monthly recurring order of whatever product they want to arrive on their doorstep each month. Getting your customer on an auto ship is what you want to push for.
In the end the big money in network marketing is through your customers. When it comes down to it most people will not build a larger organization but many will continue to use the products if they enjoy them.
So the key to making money with your companies products is making sure the products are something a person would use whether there is a business opportunity associated with them or not. Meaning if they are not building the business they will continue to order the products anyhow. This is key to your long term success in network marketing.
Method #2 – Building an Organization
This has always been my focus in this business to build a large organization or a downline.
So instead of going after customers I go after people who want to build a large organization of distributors.
What happens when you build an organization of distributors is you get paid off of the product they order monthly and typically you will also get a bonus for bringing them on as a distributor.
So instead of just bringing on a customer or someone who just order’s product, by recruiting distributors you are bringing on a person who will be a customer, AND at the same time be someone who goes out and looks for more people to join the organization.
The great thing with this strategy is when they bring new people into the business you are also getting a commission on the people they bring in; as are they. And of course this continues on down the line. Meaning you get paid off the activities of people throughout your organization.
This is where the big money is made in network marketing.
A quick tip for you…
If your focus is like mine and you are looking to recruit people into your business instead of approaching them to be customers do this:
If they say no to the business do not just walk away. But rather ask them if they are open to being a customer.
What happens here is a percentage will say yes to being customers; especially if you have a great product, so now you start to make income off of their monthly product order’s.
And the other cool thing with this strategy is that a certain percentage of customers will eventually become distributors; especially if they love the product and you explain to them how they can get the product they now love for free by being a distributor
Method #3- Attraction Marketing
OK so the past 2 methods are how you make money in the actual mlm company you are with.
A third method that many people are now using to earn additional income is through what is called attraction marketing.
Which is a method of recruiting new distributors into your business using the internet to attract leads to you.
So instead of you going out and recruiting people the strategy here is by using certain internet marketing methods you attract people to you who want to work with you in your business. Meaning they reach out to you asking to work with you.
So that’s pretty cool in and of itself… no question it is a heck of a lot more fun having prospects come to you verses you chasing after them.
However, this still only earns you money by either recruiting them into your downline or bringing them on as customer’s right?
BUT… here is where this way of building your business gets really fun and adds a very nice 3rd income stream to your business.
A component of this method is a thing called the Funded Proposal!
Again attraction marketing is a form of internet marketing. Part of the process is creating systems where people can “opt in” or join your email (newsletter) list. Very much like on the side of this blog.
People opt into your email list, either through capture pages, squeeze pages or through opt in forms like what you see on the side of this blog.
Once they sign up for your email list you are now able to email them daily.
The trick here is to email them 90% of the time valuable, helpful and insightful information, not sales stuff.
HOWEVER… and this is where it gets fun and you create your 3rd
income stream; as you are providing the people on your email list with truly valuable information 90% of the time they come to see you as a great person, a helpful person, an expert in the field, someone they now know like and trust.
As a result you can now start offering them additional products that will help them, 10% of the time. Meaning you can now sell them stuff 10% of the time.
And of course the additional products you are offering (selling) them you are making money from when they purchase them.
These products could be anything and of course it will depend on what your email list is based on. What type of information are you providing?
For example if your network marketing company is a weight loss company, and your email newsletter is providing weight loss, health and work out tips to your leads; you could also offer an eBook you created on how to lose weight fast, price it between $10 – $20. Or you could find an affiliate product and offer it to them.
It would surprise you at how much $10 – $20 products would grow your bank account. And this extra money will allow you to now advertise more and grow even faster.
Another example would be if instead of providing health information to your list you are providing marketing tips, you could then create a marketing course and promote that to your newsletter list.
The possibilities are endless.
But the beautiful thing about this strategy is that you are now not only making money on the sale of your companies products or commissions from recruiting distributors; but also on the sale of products you are selling to your list.
Basically you are earning while you generate leads.
And if you have been in this industry for any time at all you understand very well that not everyone joins your business, some will say no. So with attraction marketing you will end up selling your e-book or course to people who may say no to becoming customers or distributors with your business.
That is very cool and very powerful when you understand it.
How to Learn Attraction Marketing
Now obviously what I just explain is a very high elevated overview of how this method works.
There is quite a bit more involved in getting set up and rolling with it. It is not hard to implement but there is a learning curve.
So a couple of things with it…
First – Continue Actively Prospecting
If your goal is to build a network marketing business, do not give up your other recruiting methods. Attraction marketing is a long term strategy and not very duplicatable, so it is crucial that you continue to recruit people into your business by actively prospecting people.
I refer to attraction marketing as passive prospecting. Because you are putting up “stuff” on the internet that will passively bring people to you.
Active prospecting is you going to people and asking them if they are open to looking at your business.
To have success in network marketing you must spend at least 70% of your time actively prospecting. The rest of your time you can spend passively prospecting and figuring out how to use the internet to do so.
Second – Learn from People Doing It
Do not try and figure out attraction marketing on your own. There is too much involved and the internet is always changing.
I figured I knew it all and could figure this out on my own; I was wrong and it set me back years. The shortest way to learn something is to find someone who has done it and learn what they have done.
Luckily there is a great company out there who all they do is teach and train on this method. So if you are interested in learning about it I recommend you check them out. I use them to this day, they are on top of internet marketing and what is working now.
You can check them out here: Attraction Marketing
And there you have it my friend, now you know exactly How to Make Money in Network Marketing.
Now it is just up to you to go and make it happen.
If you have any questions at all please put them in the comment section below and I will be sure to answer and help you out.
To YOUR Success
P.S. So as we discussed above, on the side of this blog you will see a spot to sign up for my newsletter. If you want more training on how to be a success in your business and generate more leads, sales and prospects be sure to jump on it.