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Gods of MLM and Network Marketing

Aug 17, 2007
The big players know "how to assess" a network marketing company, and the following three questions allow them to eliminate 95% of the companies they see:

1.Would I buy this product myself if I was not going to get a check?

Generally speaking, if the product is not one that you'd have any interest in, then your success is going to be weak. The key is personal passion. They find something that they can stay pumped and motivated about no matter what happens. They identify with the group of people for whom the product is designed. If the answer is no, they simply decline and look at another opportunity.

2.Would they pay that price for the product or service?

If not, it's not likely that anyone else will either. They know that people are not going to automatically pay more for a product just because they might get a bonus check. Success in network marketing is all about getting the product to the end-consumer. Someone who actually wants it and is willing to pay for it. Without movement in sales, t he business will quickly fail and any recruits will bail within 90 days. And let's be honest: the MLM industry is notorious for over-pricing mediocre products just so the company can pay out commissions. The product has to have a value that meets or exceeds the price tag. Otherwise, it's a waste of time. The only people paying $4 for that bar of soap or $13 for that bottle of shampoo are the other distributors.

3.How many people are needed on the team to break even?

This is one of the most overlooked factors when selecting a company. Most people get so enamored by the pay plan chart and the dream of building a team of thousands of people that they never bother to do any basic 3rd grade arithmetic.

Any serious business owner knows how much money he has to bring in to make a
profit and he can tell you. 99.9% of network marketers have no idea.

And it's easy to figure up. Get a pencil and paper and follow along:

Figure up how much it costs for you to operate your business each month. Product purchases, website, marketing, etc. This is your overhead. (Example: $400 a month)

Figure up the average commission you earn on an enrollment when someone signs up and buys the same amount of product you do. (if you get paid different percentages on different levels, take an average of your top three levels) This should be a dollar figure, not a percentage figure. (Example: $5.25 per person in your downline)

Divide the figure in step A by the figure in Step B. This is the number of people that you require in your downline to break even. (Example: $400 divided by $5.25 = 76 people).

Leaders know they should be able to break even on expenses with only 4-8 people on the team. The longer the team goes without earning profits, the more likely everyone gets frustrated and quits.

Here's what the leader does locally:

Convinces a leader in another company of the superiority of his company and pay plan and markets to the other marketer. That leader brings most of his downline and suddenly there's a new big player.

Sizzle Cards: Drops cards everywhere he goes so that every trip becomes a business trip to "distribute marketing materials" so even pumping gas becomes tax deductible. Those cards are so good that they get people to call the leader and he can brag about how he went to the top of the company in a hurry and by just doing what he teaches, that prospect can do the same. Sizzle cards, however, work great at any level in network marketing.

Here's what the leader does online:

Uses a list already created by a successful marketer and does a joint venture with the owner, maybe even paying to sponsor the owner for the owner to recommend the program to his list of highly qualified leads. Lots of people join and the big player goes up the ladder.

The leader also has automated traffic going to his sign-up site, a web page so well designed that it converts and recruits like crazy. Anybody can set up their own fully automated traffic system and get targeted prospects just like industry leaders. To set your own up for free, just click here.

Those are the secrets of big dogs, they leverage. Leaders realize that their most precious asset is time so they use it getting the time and efforts of other people to pay off for them.

Can anybody do what they do? Yes, but it requires persistence, diligence, lots of guts, and determination. Start with what you can do on your own, get some awesome sizzle cards and generate automated traffic to your own website.
About the Author
Tyler Ellison teaches how to make fast easy money online marketing legally using automated systems like the free fully automated traffic system and guerilla techniques to promote businesses.
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