Network Marketing |
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Table Of Contents Preface . . . . . . . . . . . . . . .
. . . . . 4 Getting Started . . . . . . . . . . .
. . . . . 9 Really Getting Started . . . . . . .
. . . . . 16 Month 1 . . . . . . . . . . . . . . .
. . . . 31 Month 2 . . . . . . . . . . . . . . .
. . . . .35 Month 3 . . . . . . . . . . . . . . .
. . . . .39 Months 4-12 . . . . . . . . . . . . .
. . . . .42 In Conclusion . . . . . . . . . . . .
. . . . .45 Shoestring Budget . . . . . . . . . .
. . . . .46 Samples Of Company Listings . . . . .
. . . . .48 Preface For all of you who have been looking
for a business, something that you could start at home part-time and
build, this book is for you. For all of you who hate working for someone
else... who want or need a change...who want freedom from the cycle
you are locked into, this book is for you. It's not a book designed to offer pie in the sky or get rich quick fantasies but it does offer opportunities without a ceiling. Opportunities
without any limits other than those you put on yourself.
So, if you are looking for a business opportunity to create a future
for yourself. If you are willing to work at that business (even part-time)
this book is THE place to start.
Much has been said and written about Network or Multilevel marketing
as it is sometimes called. Some of it has been good, but a lot of it
has been bad.
Network Marketing has gotten a bad reputation for a lot of good reasons.
Thousands of Companies have set up "Network Marketing Programs"
that were never meant to be anything more than giant pyramid schemes.
They played on people's greed or desperation to "get rich quick".
As a result, the only people who got any real money at all were the
people at the top of the pyramid.
Fortunately, there are also hundreds of legitimate, well-run Network
Marketing companies that offer great opportunities for people with the
desire to succeed and the willingness to work. Many well known companies
have been involved in Network Marketing for years...MCI, Toyota, Watkins,
Gillette and Travelers just to name a few. Just about every product
imaginable is now available thru Network Marketing companies.
By the time you finish this book you will know how to tell the legitimate
programs from the rest. You will know what to look for and what to stay
away from. You will hopefully be able to make an intelligent informed
decision about what, if any, business is for you. Given the chance, most people would prefer
to be self-employed. Although more and more people are becoming self-employed,
by starting a homebased business, many more let perceived obstacles
stand in their way. This book will examine some of those obstacles and
show you how to overcome them.
Many millionaires have been made thru Network Marketing. Legitimate
Network Marketing can make YOU a millionaire. Some people believe it
is one of the few real chances left for the little guy to grab that
brass ring. This book is written for the little guy. But it is no magic
money tree and it does not happen overnight. And, it certainly does
not happen in 30, 60 or even 90 days.
Just like any other business from the local deli to McDonald's franchises,
it takes hard work and consistent effort to achieve success. You need
to be willing to open your mind and learn, I can provide information
but I can't force you to receive and utilize it. If you find that there
is too much information to absorb at one time, take it more slowly,
write in this book, highlight passages and go back to them, and you
will learn. Can you do it? Of course you can...anyone can. The question
is will you?
Of course you will; that's why you bought this book. The fact is, whatever
you believe, if you are willing to work, even just a few hours a week
at your business then there is a business in this book for you. And,
you can succeed.
This book is the result of years of accumulating all kinds of network
marketing information. I have received mail from every source imaginable.
I have spoken to people from all walks of life and from all over the
world. I have researched hundreds of programs, some of them great, some
of them good and a lot of them not good at all.
Included are a large number of programs that I consider to offer the
best opportunity for success for "The little guy". The inclusion
of these programs is based on my own stringent criteria. Each of them
offers an excellent opportunity for success. I say opportunity because
that is just what a business is, an opportunity. There are no guarantees.
What you make of any opportunity is up to you. Have a goal, surround
yourself with positive people, and most importantly, follow thru and
ACT to achieve your goals. If you do, before you know it, you will have
guaranteed your own success.
By way of background, the criteria for a program to be included in this
book required each company listed to measure up in the following ways: 1. To have been in business for more
than 5 years and/or in network marketing for more than 2 years. 2. To have established Customer service
lines and support with respect to marketing materials, product information
and ordering. 3. To cost less than $100 to become
associated with the program. 4. To cost less than $50 per month
to maintain your position with the program. 5. To be a genuine "run it from
anyplace" type business without required meetings, presentations,
seminar attendance, etc. 6. To have a simple understandable matrix. 7. To enable you to earn an income
from sponsoring just a few members. 8. To have a product(s) or service(s)
that is genuine and appeals to a large segment of the general population. 9. To have a simple payment plan
that is accurate and pays out promptly. 10. To have and promote a realistic expectation
of the program, how much time is required, how much money you can earn
and how quickly you can begin earning money.
The listing for each company will go through each one of the criteria
step by step so that you can judge for yourself. There are a few good
companies that do not meet all 10 standards, in which case this is clearly
noted. For instance Amway, an otherwise excellent Company requires $125
to become a distributor.
The list of Network Marketing programs in this book is by no means exhaustive
and the reader is welcome to look into or try any program that is of
interest, whether or not it is included here. My suggestion is that
before jumping aboard you subject your choice to my 10 point test as
discussed in this book. If it measures up, I say go for it.
Please remember this, it will help you keep going if the going gets
slow: You are creating more than a business, you are creating FREEDOM
for yourself. I'm talking about freedom from the daily grind, freedom
from worry about bills and best of all FREEDOM OF CHOICE. Being able
to do what you want when you want is a fabulous feeling. But, obtaining
this type of freedom requires you to "pay your dues". By this
I mean that you are going to have to work for it. And, just because
you have limited financial resources does not mean you can't make it.
All you need is the desire, a plan and follow thru.
Most people spend their time "getting ready" You need to get
ready but you also need to "get going". Getting ready does
not mean a thing without that second step. So, if you want to change
your life for the better, don't spend the rest of it "getting ready".
Remember that this is YOUR BUSINESS. Every day ask yourself 'Would I
as my boss tolerate the work habits of me as my employee?" Make
sure the HONEST answer is yes every day and you will succeed.
Don't worry about starting out with very little but keep at it. Just
remember that one penny doubled every day for 30 days ends up becoming
over $5.2 million dollars. Whenever you feel like giving up think about
the fact that after 20 days the penny has only grown to just over $5,200.
The reader should know that because of the changes that are constantly
taking place in the area of Network Marketing, I consider this book
to be a 'work in progress" and will be changing, updating and modifying
as I think it is needed. I would welcome your comments, suggestions
and questions. Send them to: P.O. Box 1529, Flagler Beach, FL 32136.
And lastly, whether you purchased this book, borrowed it from a friend
or just found it someplace, feel free to write me with your name and
address and I will send you one years' newsletters and other updated
information. Getting
Started Before choosing what is going to be your future
business, you need to think about a few things. You need to examine
your own beliefs and lifestyle. You need to think about the products
and services you currently use or would use and believe in. Whoever
said "do what you love and the money will follow" was absolutely
correct and the principle applies here. It is far easier for anyone
to promote what they believe in than what they don't. Why fight it?
One proviso; make sure there is a broad market for the product(s) you
choose to promote. The bigger the market, the bigger the base of potential
members. The first rule of any marketing business especially if you
are starting with limited capital, is to give people what they want.
People buy benefits, they buy solutions to their problems...and they
want instant gratification. What can your business or products do for
them? What problems do they solve? Keep this in mind and make sure that
while picking a product line you love you also pick one most everyone
else will love.
You also need to make sure that you are not placing obstacles in the
way of your own success. For instance, have you been telling yourself
that you will start a part-time business or work on making more $$$
when you have more time? more money? less distraction? If you take nothing
else away from this book remember my words here...
THESE THINGS WILL NEVER CHANGE UNLESS YOU MAKE THEM CHANGE AND THERE
WILL NEVER BE A PERFECT TIME TO START! Your life will change when YOU
MAKE IT CHANGE... no sooner no later. So stop telling yourself excuses
about why you can't and start thinking about how you can. When you do
that...you will.
That out of the way, ask yourself the following questions: If money
were no object, what would you be doing? If you had only one year to
live (and would be healthy right up to the end) what would you be doing?
Think about these questions as you read thru this book and as you go
thru the day. Be honest, write down your thoughts if necessary. We will
come back to why I want you to do this later in this book.
If you are already involved in a Network Marketing company that you
are pleased with, you may want to skip this section. However if you
have the slightest reservation about your current program, read on.
You may reassure yourself, or you may decide to switch. At least it
will have been an informed decision.
If you have had no experience whatsoever with Network Marketing, let
me start by explaining as simply as I can, a few of the most common
terms.
C
UX UP AB CD EF ME UU GH IJ KL MN OP QR ST UV WX YZ AC BE DE YH RF IJ LA SL CM AA KL DL DE
When I speak of your SPONSOR, I am talking about the person or company that brought you into the program... i.e. the person who recruited you. Your
sponsor would be UPLINE of you meaning he or she is between you and
the company on the network matrix. A MATRIX is simply the way you are
positioned within a program for purposes of who gets credit for which
sales. And you are in his or her DOWNLINE. Now that I have thoroughly
confused you let me try and clarify.
The figure above is a 2x4 Matrix. Each pair of letters represents a
person, if you are "C" all of the other sets of letters represent
individuals who are all in your downline. If you are "ME"
then "UP" is upline from you and is most likely the person
who sponsored you. If you are "C" you have 30 people in your
downline. If you are "ME" you have 6 people in your downline.
Since this matrix represents where your overrides come from, I suggest
you understand the one that pertains to your program. This is especially
important if your program allows you to place people in specific slots
as opposed to just filling in the next available one. How you place
new members could greatly affect your income and different programs
have different rules. I'll speak more about this when I review specific
programs. It is however very important to understand the concept. So
remember to ask how the particular program you wish to join works.
Don't worry if you are still confused, as I discuss these concepts throughout
the book, you will begin to understand them. To get started, I suggest you do the
following:
1 . Do some simple information gathering. Look thru the listing of companies
and products listed in the back of this book. Call or send for additional
information on any that interest you or seem to fit your needs. Go to
your local bookstore's magazine rack and find magazines that discuss
and include ads for network marketing programs. Determine what interests
you and send for additional information.
If you know people in Network Marketing, talk to them about their experiences,
but do not get talked into any particular program yet. You need to gather
information, learn about Network Marketing in general, learn about specific
programs and keep your options open.
2. As you start to receive the information, read thru it. Once you have
an ongoing Network Marketing business, you can then establish another
or go on to something else. This is especially true if you are on a
limited time and/or monetary budget. If two people each have only have
5 hours a week and $100 per month to promote their businesses, which
one do you believe is most likely to succeed? The one who is running
5 programs and has no money to do advertising or promotional work for
any one of them because he or she is maintaining 5 programs? Or, the
person who concentrates on one and spends 5 hours and $50 or more a
month promoting that single program in one way or another?
4. Some of the programs in this book will allow you to start for free.
Others can be started for as little as $15 to $30 dollars. Some others
are a little more costly but never more than $100 or so. However, money
is not the only criteria. I cannot stress enough the value of believing
in and using the products your program is promoting.
Let me illustrate. About a year ago, I joined a program because I wanted
a marketing manual that was being offered as a free bonus by a distributor
looking to build his own downline. Although the company has a number
of excellent products, I had no real interest in them. I did however
purchase one bottle of their Pycnogenol which I promptly left on the
shelf.
About 6 months later, my 80 year old mother called to tell me that her
knee had been acting up again and had gotten so bad that the doctors
were suggesting knee replacement surgery. After calming her down and
thinking about all the claims I had read about the product I had sitting
on the shelf, I decided we had nothing to lose by giving it a try. So
I gave my mother this simple herbal type product to take with an attitude
of "What have we got to lose". Within about a week to ten
days her knee was so much better that she is back to walking 2 miles
a day and she insists that she will continue taking those "pills"
from now on.
The point of this digression is simple. I now find myself sincerely
promoting a product which will make me money and I can feel comfortable
doing so because I sincerely BELIEVE IN the product.
I cannot stress enough the importance of believing in the product. Broken
down into simple terms, your network marketing business is really nothing
more than a referral business. You refer people to a program who in
turn refer people and so on. Simply illustrated, if you go out to a
movie and think it was fabulous, don't you tell people that they "really
need to see this movie". When you go out to a new restaurant and
have a great meal at a great price don't you tell people that "they
really need to try it".
Your Network marketing business works the same way, and it will grow
much more quickly and more likely become something you genuinely like
to do if you love the products. How are you going to tell people "you
really need to..." if you don't. What kind of enthusiasm will you
generate every day if you don't use the products? You will also have
greater desire to learn all you can about the products and the company
if you are a customer. If you really believe in the products, its easier
to "work" at succeeding because it isn't really "work"
to do something you like. There are hundreds of Network Marketing companies
to choose from. They offer opportunities to promote every type of goods
and services imaginable. I'm sure you can find one you can really believe
in.
It is true that I have listed a number of companies that will let you
build a business without ever talking to anyone but it will always take
longer this way. If you believe in the product you will automatically
tell people about it. This will do more to jump start your business
than you can ever imagine.
5. The true power of Network Marketing is that the little guy has the
same chance to succeed as the big guy. This is because you do not have
to go out and "recruit" hundreds of people. All you need to
do it focus on duplication. Very simply, focus on getting two people
who are willing to focus on getting two people who are willing to focus
on getting two people and so forth. If you do this, regardless of what
program you are in, by the end of one year you WILL HAVE a full time
income.
Again, let me illustrate what I mean. Nationally, I am told, the average
Network marketer "recruits" 2.7 persons into their business.
Most do not make money and drop out. At a glance anyone can see
why. Even with the most generous payout, no Network Marketing
program is going to make money for you with 2 or 3 people. But if you
work your business correctly, this is all you will ever need. The answer
is duplication.
Going back to the movie theatre example, if I referred three people
to the movie my income would be.75. Obviously nothing to get excited
about. But remember, the trick for the little guy to succeed in Network
Marketing is not to strike out trying to hit a home run when a series
of singles will win the ball game. Suppose that movie theatre owner
had said "not only will I pay you .25 for every person you refer
but if as a result of that referral, those patrons in turn refer someone
who also refers someone, I'll give you .25 for them also. This is exactly
what is happening with Network Marketing programs.
So, you referred three people to the movie, they in turn also referred
three who also in turn referred three...get the picture? Now you have
earned $9.75 just for telling 3 people to go see a movie. If the movie
is really good and I continue to recommend it, my efforts will be multiplied
many times over. AND, more importantly, I will continue to earn $ every
time any or all of them go back to the movies!
The point is, you are not doing all of the work by yourself. As each
member works his or her business, they are contributing something not
only to their own income but to yours as well. Thus, your income can
increase dramatically over a period of time even though you continue
to put in the same number of hours. Network Marketing is unlike putting
in 40 hours at your job, where you earn the same pay for the same work.
The beauty of Network Marketing is that if you continue to put in that
same amount of effort week after week, your income will begin to increase,
first slowly but more and more dramatically as your business progresses.
Hopefully this will give you the incentive you need to stick with it.
6. Getting back to reality, you need to calculate your projected business
expenses for the next 12 months. What will it cost to maintain your
position and promote your new business. Some programs will require more
start-up capital than others. Keep this in mind along with the fact
that I am telling you to make up your mind now that you will need to
invest 12 months into building your business. You may very well succeed
in building your business more rapidly and be pleasantly surprised. Do not however, buy into the "overnight
success" stories; they are much more the exception than the rule.
Be realistic and make this 12 month time period your goal period..."
I will have $XX per month income by the end of 12 months" and then
go for it. Look forward to the freedom you are creating for yourself
day by day. Remember, you are your own boss, work hard for yourself
and YOU WILL SUCCEED. Really
Getting Started As soon as you have chosen your new business,
you need to do a number of things to insure that you get started correctly.
First, take time to stop and think. and then, take more time to stop
and think. This may seem like an odd thing to say since I've repeatedly
said things like "do it now", and "go for it".
Why am I now asking you to stop? I'm saying this because you need to
know where you are going and how you are going to get there before you
can embark on your trip. Running off full steam ahead accomplishes nothing
if you do not know where you are going. And make no mistake, building
a business from ground zero to successful ongoing business is just like
taking a trip. You will need to plan, account for things like expenses,
wrong turns, getting tired, unexpected problems, feeling like you will
never arrive, etc.
In short, make sure that you know which program best suits you and whether
it realistically can take you where you want to go with it BEFORE YOU
GO ANYPLACE. Do you really want to invest 3 or 4 or more months of your
life in a program only to discover that if you had given it more thought
you would have chosen a different program? This said, give your chosen
business the proper amount of thought, MAKE YOUR DECISION AND GO WITH
IT. Indecision will suck the life out of the best of us.
Remember the two questions that I told you to think about? What would
you be doing if money were no object? and What would you do if you had
just 12 months to live? Now is the time to take your answers to those
questions and match them up with your goals and the use the information
to pick the business venture that fits into the big picture. Your goal
cannot be to make a million dollars a year if you would like nothing
better than to be teaching first graders how to swim. You usually cannot
run a big company with dozens of employees if your dream is to live
on a houseboat cruising down the Mississippi. Get the picture?
While there is nothing wrong with anything you decide, you need to focus
on what you REALLY want, and what's REALLY important to you. The point
of the two questions is to help you find out where your REAL interests
lie and focus your energies on achieving your REAL goals.
Ready to start? Let's keep it simple. Think about where you want to
be one year from now and write it down. Be very specific but also be
realistic. if you are currently earning $15,000 per year and starting
your business on a shoestring, a realistic goal for the end of your
first year might be an extra $500 or $1000 per month. Save the "I
want to be a millionaire" goal for your 5 year plan! If you do
better, wonderful, but an unrealistic initial goal can do more harm
than good. From that 1 year goal you can set your short term goals...monthly
or even weekly.
Always remember however that Network Marketing programs tend to build
slowly and gain momentum after a period of time. Once they gain that
momentum however they tend to take on a life of their own and will reward
your hard work with residual income. I say this now so that you will
not feel disappointed or discouraged when your first few checks do not
seem to bear any reasonable resemblance to your efforts. Just keep in
mind that you are doing this for your long term security
I have created a sample one year plan and it is outlined on the following
pages. It is by no means the only way it can be done. It will however
give you a good starting point for creating your own plan or, it might
suit your needs perfectly just as its written, so feel free to use it.
It is your business and your goals, make it personal to you.
Also, depending upon how much time you can devote, and how your business
progresses, many of the goals in the sample plan could be accomplished
in much less time. Use your own judgment but do not take on more than
you can reasonable hope to accomplish in any one time period.
Goals should be set high enough to challenge you. However, if you set
your goals too high and miss you will feel like a failure. If you set
them a little low you will feel great when you have accomplished your
objective earlier than planned and you can always push yourself harder
with the next set of goals. After you establish your plan, refer
to it regularly. Use it to make daily and weekly "to do" lists.
Even if your list requires you to accomplish only one or two things
a day, write those items down and accomplish those tasks every day as
your first priority, your success and the success of your business depend
on it.
Note: Do not worry if you do not quite understand everything in the
plan as written here. I will go over everything in greater detail later
in the book. Just concentrate on getting the general idea. SAMPLE ONE YEAR PLAN MONTH ONE - To have accomplished the
following: 1. Contact the upline sponsor I spoke with or the parent company itself regarding joining my program of choice and join. 2. Contact local authorities about regulations regarding home based business a-nd do what needs to be done to comply.
3. Review information and promotional materials sent by company and have a working knowledge of the products and how the program works.
4. Review promotional and sales materials
and decide on an advertising and sales budget. 5. Call my upline sponsor and/or
the Company to see if they have any tips on getting started, suggestions
etc, that may not have been in the materials given. 6. Decide on a marketing plan and
place it in motion. 7. If I have decided to set up a
separate telephone #, 800# or Voice mail system, get the information
and get it in the works. 8. Set up a system for tracking my
income and expenses, and for keeping track of responses so that I can
determine the effectiveness of my advertising. 9. Set up a database for keeping track of my customer base and leads. MONTH TWO - To have accomplished the
following: 1. Placed my first one or two print
ads, or passed out flyers, etc. as planned. 2. Complied a list of Civic, Professional
and Business Organizations that I might wish to join to help promote
my business. 3. Created an information packet
of materials to be sent out to individuals who respond to my advertising. 4. Sponsored at least one new member into my organization.
5. Look into whether there is a postcard
that has been created by my upline sponsor or the company which has
been tested and proven effective. If yes use it, if no, create one. 6. Send out at least 50 postcards. 7. Decide if I want to take Checks
by Phone or become a Credit Card merchant. If yes, start gathering information. MONTH THREE - To have accomplished the
following: 1. Determined whether my initial advertising efforts are working, expand them if they are and modify them if they are not. 2. Explore and place into action
at least two new promotional or advertising avenues. 3. Sponsored at least two new members
into my organization. 4. Contacted any newly sponsored
members to help set them on the right course. 5. Send out at least 50 postcards. MONTH FOUR - To have accomplished the
following: 1. Review my advertising and promotional
budget to decide if it is adequate, decide if it is being efficiently
used and decide what is working and revise if necessary. 2. Join at least one business or
professional association to network my business 3. Explore and place into action
at least two new promotional or advertising avenues. 4. Sponsored at least two new members
and to have helped each of the members under me to have each sponsored
one. 5. Call my sponsor to "chat", exchange information, tips strategies etc. 6. Look over my lead tracking with
regard to my postcard mailing and decide whether its working. If yes... 7. Send out at least 100 post cards.
If no... 8. Think about whether the postcard
message needs to be changed, is the mailing list at fault or is this
the type of business that does not lend itself to postcard promotion. MONTH FIVE - To have accomplished the
following: 1. Contact people (in person, by
phone or mail) who had expressed an interest in the program who for
whatever reason decided not to move forward at that time. 2. Re-review advertising and promotional
budget and if not working, modify as necessary. 3. Get the names and phone numbers
of at least 5 persons associated with my program who are upline of me
and call them to see how they are doing and see if they have any suggestions,
approaches etc. that I may have missed. 4. Send out at least 100 postcards. 5. Calculate how much it costs to
generate a lead and what percentage of those leads are converted. 6. Check with my downline to offer encouragement, suggestions etc. MONTH SIX - To have accomplished the
following: 1. To be at a break even point or
better. 2. Review my entire progress to this
point and determine if there is any thing I can be doing to speed things
up. And then, to do it! 3. Send out at least 200 postcards. 4. Check with my downline to offer encouragement, suggestions etc. MONTH SEVEN - To have accomplished the
following: 1. To have created a steady stream
of income that is approximately double my current business expenses. 2. To review all of my advertising
and promotional efforts, identify the most successful and begin replicating
them elsewhere. 3. Check in with my downline to offer
encouragement, offer suggestions give advice, answer questions etc. MONTH EIGHT - To have accomplished the
following: 1. To re-think my business and determine
at which point I will be able to make it into a full time income and
then start planning for that as my ultimate goal. 2. To take a class, course or seminar designed to keep me focused and motivated. 3. To re-evaluate my postcard mailings
and as long as they are working, set a schedule to send out 300 postcards
a month. 4. Check in with my downline to offer support, encouragement etc. MONTH NINE - To have accomplished the
following: 1. Go back and speak to some or all
of the upline people I had previously contacted to see how they are
doing in relation to me and why. 2. Check with my downline to offer
support, encouragement, suggestions and answer questions etc. 3. To have sent out my postcards on schedule. I am sure that some of what is outlined
in the monthly plan does not make sense since it is my abbreviated version
of what basically needs to be done. It sets up a very general outline
which is meant to be an example of what a plan should look like. It's
general focus is on direct marketing rather than face to face selling,
telemarketing, group presentations, seminars, home parties etc. I believe
that many people shy away from network marketing because they do not
want or cannot do this type of promotion. They can however be very effective
methods of promoting your business and should be considered as such.
Therefore I fully realize that this sample outline may need modification
for a large number of readers who may each choose a different business
approach. By the
same token, your outline may not make sense to a casual reader. I assure
you that no matter how much of a beginner you are, by the end of this
book you will understand what you need to do. Later in the book I will
take the above outline and go thru it month by month adding explanation
and detail so that you can understand exactly how the progression works.
If you follow my directions and stick to the program, you will succeed.
The key here is long range planning and consistency. With respect to
your new business you need to get into a very specific mindset. Your
success is going to depend on your work habits and priorities. For instance,
money used advertising and promoting your business is not "spent"
it is an investment in the future of your business and in yourself.
This is your business, not a hobby, treat it that way and it will reward
you.
Whatever your plan/goals and budget are, stick to them, they are your
first priority. If you need to modify them then do so for sound business
reasons, not because you decided to spend your ad budget on dinner out
with friends. Unless, of course, your dinner out with friends is to
discuss their interest in joining your new business. In that case its
not only good business, it may be a tax deductible expense.
Generally speaking, a home based business can provide some excellent
tax deductions, especially in the beginning stages before you are generating
large amounts of income. Before you start deducting things however,
check into the rules for record keeping and deductibility and follow
them.
And, speaking of regulations, I again remind you that before you actually
start doing business, check with the local Chamber of Commerce or local
Government offices to ask about regulations which pertain to home based
business. Most areas require some sort of permit or filing. It is usually
very simple and inexpensive to comply so do it now and avoid the possibility
of big problems later.
Also, this might be a good time to think about the name of your business
and whether you wish to incorporate. Many areas have special rules for
businesses operating under "fictitious names". Decide which
direction you want to take and follow thru. You do not want to get your
business up, running and successful only to find that you have problems
relating to your lack of filing as a home based business or that you
were improperly doing business under a fictitious name. It is easy enough
to do it correctly at the beginning. Usually all you need to do is to
fill out a form or two, and place a small classified ad in a local newspaper
notifying the public of your intent to do business under whatever name
you chose.
While you are at it, your local Chamber may be able to provide you with
things like lists of established businesses, information about free
or inexpensive business related classes and seminars, names of organizations
such as SCORE which provide free or inexpensive advice to new or small
businesses.
If you can possibly afford it, it is usually a good idea to join your
local Chamber of Commerce. As an active member, the wealth of information,
increased credibility and networking availability make it an invaluable
asset.
So, now we have our simple one year plan, our "legal" situation
is in order and we are ready to go. Or are we? Before doing anything,
carefully look over all of the sales and promotional materials provided
by the company you have now become associated with. What other materials
or promotional assistance do they provide? If you are new to Network
Marketing or starting your own business, you should be especially anxious
to take advantage of everything the company has to offer by way of support.
What we need to do now is create a marketing plan. Without one, you
will find yourself jumping haphazardly from one idea to the next, trying
one thing and then another and getting no place fast.
In Network Marketing, you can achieve success in one of at least two
ways. You can become a "sponsoring machine" and sponsor large
#s of people into your program knowing full well that some of them will
stick and some of them won't. The sheer numbers will eventually net
you enough workers to build your downline.
Or, you can take the second approach and "work smart". This
approach concentrates on sponsoring just a few who are interested in
working the program and who are willing to in turn sponsor a few and
so on down the line. Each of these approaches will eventually get you
to the same place, that is, upline of a solid base of people producing
a solid income for you.
The first may be faster, but it takes a lot more initial money and effort.
As I have indicated earlier, this book is written primarily for the
"little guy" starting on a shoestring, starting part-time
and with limited business experience. It does not mean that you cannot
build a large and lucrative downline, it just means you will do it realistically,
based on your current situation. As your business grows you may wish
to switch to the first approach to accelerate your progress. But that
will be YOUR CHOICE. The beginning of your newfound freedom is that
you will be able to CHOOSE YOUR OPTIONS!!!
There is another way to go about building your business. There are businesses
that are set up specifically as "downline building" companies.
For a fee (usually monthly) these companies will do advertising and
promotional work designed to generate leads for you. For those of you
unfamiliar with the term, a lead is a person or company that is interested
in your product or service. The company will usually forward a specific
# of those leads to you on a monthly basis and you will follow-up, either
by mail, by telephone or both.
Anyone who has been in sales can tell you that the quality of leads
can vary tremendously from "hot" to totally useless. This
is one reason why before you pay anyone to generate your leads for you,
you need to know a few things about the company. Although they come
in various forms and offer some different benefits and services, they
basically fall into two categories.
The first category of downline building company will do widespread advertising
and other promotions to generate leads for you. As I stated earlier,
it is now up to you to follow up so that you can hopefully sign some
of them into your program. The leads you receive are usually individuals
who have answered ads about business opportunities. You can then follow-up
with an informational package describing your particular business opportunity.
In addition to generating leads, some of these companies have other
products and services, such as free newsletters with tips on promoting
your business. They may provide inexpensive fax on demand, 800#s or
other services.
It is important to ask about what you receive for your payments. You
can then determine if you will really make the most of the benefits
and make your decision. There is no point paying for the availability
of services that you have already gotten or which are less expensive
elsewhere. On the other hand, if you are new to business, and/or feel
uncomfortable promoting a business a good downline building program
may be the perfect solution. And, even if you are an experienced entrepreneur,
the convenience of "one stop shopping" and time savings might
make it a real bargain. Before you choose, look into as many as you
can, compare costs and benefits and get answers to at least the following
questions: How long has the program been in existence? Where do they advertise? To generate leads? To sign up participants (such as yourself) into the Program? How else do they generate leads? What does it cost to participate? What other benefits are available? How are the leads distributed? How long does the average member stay with their program? Do you receive any kind of commission
or fee for referring others?
Briefly, you need to ask these questions because while there are no
guarantees, the answers will likely make the difference between your
getting a real benefit or wasting your money. You want to choose a program
that has been in business more than two years. Its more likely that
they are now an ongoing business and will be around to send you the
leads you paid to receive.
Where they advertise will clue you in to the type of lead you are going
to get...business people, housewives etc. Where they advertise and what
else they do to generate leads will also give you some idea of how creative
they are about generating leads, how fresh the leads will be and how
extensively they advertise.
The cost of the program will be well worth it if you generate business
from it and if you make use of the other benefits. There is however,
going to be a lag time. By this I mean that that if you join in January,
receive your first leads 2-3 weeks later, and immediately send out followup
materials, it could be 2-3 months before you see any monetary benefit.
So budget for it and be prepared to pay out that money for at least
3-4 months before it begins to pay for itself. Again, its better to
be pleasantly surprised about a quicker return than to be disappointed
because you were unrealistic.
If you can, do not commit initially to more than about three months
of a particular program. During that time period, you need to carefully
track the leads you receive to see how many of them converted to membership.
If you divide that number by the cost of obtaining the leads, you will
be able to decide whether or not continued membership is worth the cost.
Just remember however that in Network Marketing there is a long term
value to each new member of your downline. it is not a one shot "sale"
but hopefully will provide a long term residual income. Let me illustrate.
If for example, your program costs you $30 per month and you receive
30 leads per month, each lead costs you $1 . However, if only one of
these leads signs up with your program, the promotional cost of obtaining
that member is $30.
Going one step further, having that person come into your downline may
only result in your receiving $5. Success or failure? If you said failure,
you need to go back and read the story about the movie theatre owner.
This is not a one shot sale. As long as you take care of your downline,
they will stay for the long haul. They will also start building their
own business which simultaneously builds yours. That $5 "sale"
could ultimately be worth hundreds if not thousands of dollars to you
in yearly income.
The second type of downline building program, will also generate leads
or even close them for you but will do so for a specific Network Marketing
program. In essence, if you join the Network Marketing program that
they are promoting, for an additional monthly fee, they will advertise
the program and place people under you. Conversely, some of them will
automatically place you in one or more Network Marketing programs if
you agree to joining their downline building program.
You need to be careful here to determine what is the real focus of the
company. Is it to build a downline for the Network Marketing Company
or is it to recruit people into their lead generating program? It is
very important to make sure that the Network Marketing program they
are promoting is a legitimate one, that you understand how it works
and that it is something that you would and could promote separate and
apart from the downline building program.
I say this with good reason because, in spite of what the programs may
tell you, you are not going to get rich letting them do it all for you.
Remember, they are doing it all for hundreds or in some cases even thousands
of people just like you. A much more realistic approach to these programs
is to use them to help jump start your business.
Depending on the cost and how happy you are with the results, use it
for 6 months or so to help you get up and running. At that point, you
should be comfortable with your business, should have learned a lot
about how it works, how its promoted etc. You now also have a track
record so when your potential downline people ask you how you are doing
you can honestly tell them you are making money. At some point you need
to be able to do it yourself. Your business will grow faster and you
will not be dependent upon an entity that could disappear tomorrow. While
making your decisions relating to advertising and promoting your business,
you need to keep one very basic but also very important concept in mind.
It is simply this: ALL of your initial advertising and promotion is
designed to generate leads not customers. I'm sure you now think I'm
crazy..."I thought the whole point was to get customers" you
say. Well it is, but it must be at least a two step process. It
will never work as a one step process.
Okay, so what do I mean by this? Again, very simply, how many people
do you think will invest in a product costing in some cases as much
as $100 based on what they see in a classified ad or written on a post
card? Not very many, I can assure you. What your initial advertising
needs to do is get people's attention, peak their interest so that they
will call or write for additional information. It is the additional
information you provide and whatever additional followup you do that
is going to close the deal. If you keep this in mind when writing your
ads and choosing your promotional pieces, you will be a step ahead of
much of your competition. You will also avoid the unnecessary expense
and disappointment connected with unsuccessful one step ads.
Once you have chosen your initial advertising and promotional pieces
you need to decide to whom the initial inquiries will go. As I indicated
earlier, if you are new to business or feel uncomfortable with your
ability to persuade or close a sale, you may wish to take advantage
of any assistance your upline or the corporate office will have to offer.
Virtually all of the Network Marketing programs that I have listed in
the back of this book have marketing and promotional information, brochures,
proven ads and other assistance available to you.
The type of assistance you are planning to receive from your upline
or the company will affect what your ads actually say. Some of the companies
have fax on demand, 800#s, follow-up materials, video, audio tapes and
more, available to you for this exact purpose. In fact you may wish
to choose the company you initially join based on their ability to provide
the most support in this regard. If you go back thru my listing, you
will see a number of companies that fit the mold perfectly.
Basically, if you generate the leads, they will close them for you.
It may cost you a little more per month to maintain the program but
it is well worth it if you are uncomfortable presenting the product.
As you get going and are more successful, you will find that you will
become much more comfortable and proficient at promoting the program
yourself.
There are advantages and disadvantages to having someone else do it
for you. If you love the products, have had good results with them and
like to talk to people then by all means have them call you. It will
seem more sincere, more real coming from a you rather than some distant
corporate office. If however, you are shy and uncomfortable speaking
to people, let the company or your upline sponsor do the followup. They
will sound professional and knowledgeable and they have the same interest
in sponsoring this person as you do, since your downline is also their
downline. Additionally, keep in mind that in responding to ads, some
people like to talk to a live voice, others simply want written material
sent. Always try to give people the option of one or the other.
When someone else is doing the work for you, remember that you are in
one way or another paying for the privilege. You are paying either in
the from of additional monthly fees or by giving up part or all of the
initial commission on the new membership. Everything is going to be
a tradeoff. The more help you get the more you will usually pay.
Sometimes it is well worth it. If you know that you will not have the
time, and want to get something started, you may find it more than worth
the price. There are also psychological benefits. Many people find that
once it is started, they are much more comfortable promoting their business.
As I indicated earlier, the plan outlined on the previous pages is just
a sample (there are many other things you can add to it). But for purposes
of explanation, lets start with it and go thru the steps month by month.
Again, feel free to change or add to the plan as may suit your specific
needs. MONTH ONE 1. Presuming that you have decided on
the company you are going to join, write down any remaining questions
you may still have about the Company, its products, the options, cost,
support etc., and call the Company itself or your soon to be upline
sponsor. This will be a good test of how helpful they are and how comfortable
they make you feel. Some Companies have a number of different participation
options based on your financial situation and how much support and assistance
you may need from them.
Honestly evaluate your situation before choosing. Can you afford the
more expensive options and let them "do it for you"? Or, do
you prefer to do the followup yourself? Will you honestly do the follow-up
yourself? Or, do you need the assistance of a downline building program?
Decide now because it may affect your choice of programs. Be honest
and you will avoid costly mistakes. As soon as you are satisfied that
this program is the one for you, get the applications, choose the options
you want and SEND IT IN. Congratulations; you are on your way. 2. In deciding how you wish to do business,
you essentially have 3 choices. You can be a: a. Sole Proprietorship (meaning it is your business and yours alone),
b. Partnership (in which case you will have someone with whom to share the work, the responsibility, the cost etc. But you will also have someone to account to, share decision making with, and possibly argue with if your business philosophies differ),
c. Corporation (which could have
tax and liability advantages but which is more complicated to set up). As a sole proprietor, all you need to
do is register with the local government offices, pay the fee and you
are in business. If you will be doing business under an assumed name,
you need to file as doing business under a fictitious name.
A partnership will require the above and additionally a partnership
agreement, preferably a detailed one drawn up by an attorney. When things
are going well it's easy to ignore its need but when and if things sour
you will want to know AHEAD OF TIME how you will be splitting up. Anyone
who has been divorced or had exposure to a divorcing couple will know
EXACTLY what I mean.
With regard to Incorporation, over the long term it will probably be
to your advantage (see your accountant and/or attorney for more detailed
advice as it affects you) but it does require an initial outlay for
filing fees even if you do it yourself.
3. If the Company you are with provides advertising copy, by all means
use it, at least initially. If you did not receive any in your initial
package, call your upline sponsor or the corporate office to find out
what proven ads (that have already been run successfully) they may have
available for your use. Calculate how much it will cost you to utilize
each option. Try to get an answer from your upline sponsor about what
has worked for him or her and if any sort of Co-op mailing is planned.
Once you are comfortable with the fact that you have information on
all of the initial possibilities available to you, plan your marketing
strategy as your budget allows and put the wheels in motion.
If you are planning to start by placing classified ads, you will need
to spend some time carefully crafting your headlines to catch people's
attention. You are looking to generate interest in reading what you
have to say.
Think about what types of people you want to reach. Place your ad in
media designed to reach your target audience and then TEST THE AD. Do
not presume that just because you place an ad in a local newspaper for
instance, that it is going to automatically be successful. In fact,
do not presume that ANY of your ads will be successful the first time
out. If they are, pat yourself on the back. If they are not, do not
give up. Go back to the drawing board. Think about WHY the ad did not
work. Was it the headline? Was it the body of the ad itself? Was it
where you placed the ad? Remember, your classified ad must do
three things: a. get the readers attention b. promise a benefit c. get the reader to act.
Decide where your ad may have fallen short and then try again. Do not
change everything about your ad all at once. If you do that, you will
never figure out exactly where there was a problem. Change one thing
at a time until you have a winning ad. Don't be discouraged if it doesn't
fall into place immediately, it takes time to create a winning ad. Even
the best Direct Marketers do not have a 100% success rate.
4. By now you will know if you want people to call or to write or both.
Decide on if you want a separate line for business, if you want a separate
800 line, if you want a post office box or if you want mail coming to
the house. There are pros and cons to all of these options and your
immediate budget may dictate some of your choices. Again, contact the
Company or your sponsor and see what their experience has been regarding
their choices relative to these items. Be honest about any financial
restrictions, they can't help without accurate information.
5. It is very important that your business keep accurate records. It
is far easier to start correctly now than to have to go back and try
to reconstruct 6 months from now when you realize that you can't figure
out what is going on.
It does not need to be a complicated system; in fact the simpler the
better. Just leave room for growth. Set your books up so that
they will still work as well when you are earning a full time income
as when you were just starting.
Additionally, it is very important that you keep records that will track
advertising costs, and lead generation so you will be able to figure
out how much it costs you to add each person to your downline.
Lastly, you need to keep a database of your leads and customers. It
does not need to be on a computer if you do not have one but it needs
to be as accurate and as up to date as possible at all times. This is
a valuable asset. It is not only the core of your business but depending
on how large it grows may even be a salable asset. MONTH TWO 1. Start calling at least a dozen or so small
local newspapers and weekly shoppers. For additional information about
how to contact hundreds of small local papers and periodicals, see the
Additional Information section located in the back of this book. Ask
for information about advertising and ask that they send you a media
kit. It will contain all the information you need to make your advertising
decision and usually contains a sample of the paper. This is important.
You should see what a paper looks like, what kinds of ads it runs etc.
before you run your ad.
Look closely at the publications you are considering and see if they
contain ads similar to the one you want to run. Also, if possible, obtain
back issues of the publication to see if those ads continue to run,
issue after issue. If they do you can be sure they are successful for
the businessperson running them. The reason that you do this is because
while a business might run an ad once as a test and it turns out to
be a failure. Obviously, no one is going to continue running an ad that
is not working.
To recap, if the publication contains ads similar to yours which are
successful its a good bet that yours will also be successful. But it
is no guarantee. Proceed with caution and test your ad before committing
to long term advertising. Sometimes you do not know the whole story
regarding the ad you saw. The ad may be losing money on the initial
"sale" but still be a winner because the advertiser is doing
something additional with his new "customers".
On the other hand, just because you do not see an ad similar to yours
do not presume that yours will not be successful. It is possible that
the particular publication has been overlooked. It still may be worth
a try. It is possible your headline is good enough to work for you or
that it adds a new twist. Again, do a short term test first.
In any event DO NOT and I repeat DO NOT commit to long term advertising
in any publication or be talked into any large advertising expenditures
without testing the waters first. You can never be absolutely certain
whether or not an ad will work without trying it first. If it works
you can always go back to the newspaper, magazine etc. and take advantage
of that great long term rate they promised you. But if the ad does not
work and you committed to 3 months you will be throwing money away.
That's why for example in my one year plan I am sending out only 50
or 100 post cards those first few months. I want to see if they work.
Although it may take a month or two to see results, you will get a feel
for whether its worth the cost. BEFORE you send out 10 thousand and
find out that they do not work.
That is also why I keep doing periodic reviews. I do that to eliminate
what does not work so that I can expand on what does work. If you find
a classified ad that works well for you, try it elsewhere and keep trying
it elsewhere. That same ad may work for you in literally hundreds of
places.
2. Look in your local Yellow Pages for Civic and Professional Associations
that might be of interest and provide you with assistance. Call them,
explain that you are starting a homebased business and that you are
serious about portraying a professional image. Many of them will invite
you to attend their next meeting. DO IT, then choose one or more to
join as time and finances allow.
3. By now you should be familiar enough with your Company's promotional
materials that putting together a follow-up packet would be easy. If
you have any questions ask the Company or your upline what works for
them. Take another look at the packet. Look at it as if you are on the
outside and know nothing about you or the company you are asking them
to join. Is it professional looking? Does it answer all the basic questions?
Does it give a favorable first impression or is it a bunch of poorly
done copies of copies? Think about what impressed you and what made
you decide to join. also think about what turned you off about the companies
you did not join. Based on your responses to these questions, it may
be time to modify your follow-up kit.
If you are unsure of whether or not you have put together the best package,
ask! The nice thing about the way Network Marketing works when
its working properly is that you are in business for yourself, but not
by yourself. There should always be someone to ask. In fact, one of
my criteria REQUIRES that the Company have that assistance in place
so even if your upline disappears you are not left in the lurch.
4. Regarding whether or not you need to take Checks by Phone or Credit
cards, as a general rule, the more payment options you give, the better
the response. But nothing comes without cost.
5. As we have touched on postcards briefly let's get into more detail
now. Find out if the Company you are with or your upline sponsor has
professionally printed (or at least camera ready artwork ready for your
printer) and market tested postcards available at a nominal cost. If
it is already working for others, don't try to reinvent the wheel, use
what has already proven itself a winner. But do not be afraid to ask
the questions...have these postcards been working, over what period
of time, what kind of results should be expected? When you have
satisfactory answers to those questions you will be able to decide for
yourself if postcards are for you.
To whom do we mail our postcards? There are dozens of companies who
sell mailing lists of every nature and description. Decide whether you
wish to reach opportunity seekers or a segment of the population that
may have an interest in your product and then you can buy names and
addresses of people who fit that description from the company. To whom
your postcard goes will depend on your answer to the following question: Is your focus going to be on selling
the products or the business opportunity?
If your focus is on selling product, you will want a list geared to
the types of people who would most likely buy your products. if you
are focusing on the business opportunity, you want to reach business
opportunity seekers.
It is important to deal with a reputable company. Ask them questions
like how old are the names, do you guarantee delivery (most reputable
companies will guarantee somewhere in the neighborhood of 97% deliverable
and replace names that prove undeliverable 2 for 1.
Just remember, price is not necessarily the best criteria. You want
your mailing piece delivered! MONTH THREE 1. In order to determine if your advertising
efforts are working, it is necessary for you to have kept track of your
responses from each promotional effort from the first day you started
the promotion of your business. This is true whether it be mailing postcards,
putting out fliers, placing a newspaper ad or any other method. Each
different ad or method needs to be "coded" in some way so
that you will know where the response came from. For example if you
are asking people to call add "ask for extension xxx or ask for
John" to one ad and "ask for extension YYY or ask for Mary"
to another. If the ad requests mail-in response add "suite xxx
or Dept 3" to the address.
Or, if you are running classified ads (where every word costs money)
you can save the extra word by slightly changing the spelling of your
or your company's name or adding a number or letter to the end of it
as a tracking tool. In this manner you will know exactly what response
you got from each ad. You would then take the number of responses you
received from each ad and divide it into the cost of your ad to determine
the cost of each lead. To illustrate Let's say that your ad cost $25
and 10 people responded to the ad. The cost of each lead would be $2.50;
$25 divided by 10.
As a second step, you need to track how many of the persons who responded
actually joined. Carrying the above illustration one step further, suppose
of the 10 people who responded 2 join your program. This would mean
that it cost you $12.50 to generate a new member from that ad.
Save the results from each ad. As time goes on you will want to compare
the results of different promotions to each other to determine which
are most effective. You will also be able to look at ads that have created
borderline results in terms of their effectiveness and possibly change
something that will make it effective.
Remember, your ultimate goal is to build a downline. So getting 100
responses from an ad does not make it successful if none of them join.
An ad that generates 1/10th of that and results in 5 new members may
very well be the more successful ad. From the previous discussions and
illustrations you should by now see exactly how it works. I hope you
can see the value of keeping accurate track of this information.
Not only will you save valuable time and money but when you get ready
to step up the pace, your track record of winning promotions will enable
you to duplicate your success; and build your business as large and
as quickly as you choose.
Paying close attention to how your promotional efforts are doing will
also alert you to possible problem areas. Are a large number of the
people responding asking the same questions? Are they voicing the same
concerns? Are they making inquiry but not buying or joining? These are
problems that can be solved ...if you are aware that they exist. Call
some of the other people involved in your program and ask them about
the effectiveness of their ads. Ask about closing percentages. This
will give you an idea of how you are doing in relation to others and
you can be guided accordingly.
2. With respect to new promotional avenues, depending on the program,
there are all kinds of possibilities. Fundraising, Tradeshow booths,
demonstrations, home parties, sample mailings, catalogue sales, telemarketing,
promotional tie ins, contests, giveaways, barter, donations of product
to auctions or other benefits which will get you free publicity. The
list could go on and on and is limited only by your budget and imagination.
A little creativity however can take the place of cash and sometimes
lends itself to an even more effective promotion.
3. As far as your newly sponsored members, always find time for them.
They will get discouraged if nothing is working, they will get discouraged
if they feel abandoned. Treat them the way you would want to be treated.
Clue them in to what is working for you, let them know how you are doing.
If your company has provision for it, you may want to start rewarding
the efforts of your downline by placing your personally sponsored people
under them. The few dollars you may give up initially will reward you
in the long run with a strong and loyal downline. The way some of the
companies are set up in this regard it won't even cost you the initial
commission and you still get residual income, but now so does one of
your downline! MONTHS FOUR THRU TWELVE Since much of what we do now will be repetition,
I've decided to group these months together and we will only go thru
what is new and what may become more involved as we build our business.
1 . By now the conversations you have with upline people should be taking
on a whole new outlook. You should be asking different, more involved,
more knowledgeable questions than before. You should be able at this
point to contribute something. If this is the case congratulations,
you are on your way. If it is not the case, if you are still "lost",
something is wrong. Get help now. Go back to square one, start asking
questions. You need to take action NOW to determine what is wrong.
Remember, you are in business for yourself, not by yourself. Ask some
of the upline people you have come in contact with for ideas. If you
feel it's a general lack of business experience or knowledge holding
you back, contact one or more of the Chambers of Commerce, Business
or Professional Associations we discussed earlier and ask about business
seminars or other assistance. Most times you can get free or nominally
priced assistance. But no one knows you need help if you don't ask. 2.
If things are going well and you are happy with your success and progress,
now is the time to determine whether you wish to step up the pace. Before
you say yes however, just remember that a stepped up pace is going to
require more of your time. If you are still working at a full time job,
do you have that extra time? Are you ready to think about quitting your
job? Stepping up your pace will also take more money. If the business
is producing it and you won't miss it then you may say yes. If it is
still coming out of your pocket you may want to go slow until you have
built a solid foundation.
Thousands upon thousands of perfectly good and growing businesses have
been destroyed by owners who wanted much more too fast. Don't be impatient,
don't take on more than you can handle. I know of a very large Direct
Marketing Company presently tottering on the brink because its partners
wanted too much too fast. Build a foundation and your business will
last as long as you want, no foundation and it will come tumbling down
when you least expect it.
3. By now, if you can afford the time and money, you would probably
benefit greatly from Company sponsored seminars or conventions. They
will teach you things you did not previously know, introduce new products,
promotions and ideas, motivate you, create enthusiasm and in short raise
you to a whole new level.
4. By this point you should also have a list of people who inquired
about your program and who did not join. Some people are simply "tire
kickers"; others procrastinate and never get around to doing anything.
Some however had specific reasons for not joining. Go back and ask your
downline people what prompted them to join and what they like about
the program. Ask them if they had any initial reservations and what
they were. Use that information to do your follow-up with the people
who did not join. If you feel comfortable, call rather than doing a
follow-up letter.
Please, listen to what they have to say. This information will help
you sign some of them up AND it will help you modify your future advertising
and promotions to cover these questions and concerns. In short you can
make your marketing tools more efficient and cost effective by addressing
people's reservations up front. Even if one more person out of a hundred
leads is converted. That one person was gained at no additional cost.
5. This brings me back to the cost of advertising, generating leads,
and obtaining members. The following illustration can be used for just
about any promotion. Let's say you run a newspaper ad that costs $25
and reaches 10,000 readers. That ad cost you $2.50 per thousand readers.
Let's say further that 100 persons called you for additional information.
You have had a 1% response and the cost of each lead (the $25 total
divided by the 100 persons) is .25. Taking this one step further; let's
say that you end up having 2 persons out of the 100 leads join your
program. Your advertising cost of generating a member in that newspaper
is $12.50. (the $25 total cost divided by the 2 persons who joined).
You may not see 2 members out of 100 as anything to get excited about,
but you need to look at the whole picture. Those two members are not
"one shot sales"; they are long term continuous sources of
income...as long as you take care of them, they will provide you with
a small income every month. Nurture them and help them each get two
while you get two more and the income will start to multiply geometrically. In Conclusion Do not try to conquer the world, win
one small battle at a time and before you know it you will have an empire
to call your own.
And, at all costs, it is important to decide what you can realistically
afford to set aside as your advertising budget, decide what you want
to do with it and then to DO IT ...consistently and without fail. What
you get out of your business will be directly proportional to the effort
you put in. Nothing in...nothing out.
I know I have said it before, but it bears repeating here; the point
of your advertising; in fact the point of all of your initial marketing
and promotion is to GENERATE LEADS. From that point on it is up to you
to follow thru and either close the sale or get assistance from your
upline or the Company to close it for you. But make sure the follow
through is DONE. Leads cost money to produce, wasting them is like burning
money. If you are truly starting
on a shoestring budget here are some suggestions: 1. Business cards with your promotional
message on them. You can get 1000 for as little as $20. Depending upon
your business, you may wish them to be black and white and very businesslike
or neon colored attention getters. 2. Post flyers (professionally done or
taken from the company's camera ready artwork NEVER HANDWRITTEN) at
locations likely to generate interest. 3. Write a clever press release discussing
your new business. Make it sound interesting and as newsworthy as possible.
Ask your sponsor or the company if they have any that have been successful
and use it. Send it out to as many newspapers as you can. Do not make
you press release sound blatantly self-promotional or it will go right
in the trash. A better approach might be to give "new information"
that is of general interest or helpful even if no one ever contacts
you. 4. Call the company and your sponsor
for ideas or get the names of other members so that you can ask. Do
not be afraid to ask, your upline and the Company are there to help
you. Remember they don't make money unless you do. And there are times
when even the most experienced business person needs assistance and
advice. That is why I have worked to discover those companies that do
have the stability and the resources to provide professional advice
and assistance. 5. Some products lend themselves to demonstrations,
seminars or home parties. Find out if others in your program have successfully
used these methods. 6.Take one boxes are another inexpensive
way to get started. You have seen them around; they are the small cardboard
or plastic countertop stands with things like credit card applications
in them. If the program you are with has brochures, purchase a quantity
of them and place them in retail establishments where they are likely
to be taken by the types of people you are hoping to attract. Sometimes
you will need to offer the shopkeeper a small "referral fee"
for any leads generated, other times they will let you place them for
free. 7. Co-op advertising. This involves sharing
the cost of advertising with another party. Some of the programs listed
have co-op programs available. Some of the individuals involved in the
same program as you have created successful ones on their own. Ask the
company or your upline person if there is a co-op advertising program
available. Or, you can create your own. Contact
one or more local retailers in your area whose products or services
might complement yours. You might also try contacting a local company
that sends out statements every month to see if for a small fee you
can insert a brochure. 8. Look around at how other local business
people are promoting similar businesses. They may be utilizing ideas
that you can use as is, adapt to your liking or modify by adding a new
twist. The possibilities are limited only by
your own creativity. SAMPLES OF COMPANY LISTINGS Free Internet Income Course - $295 Value! Network Marketing is BOOMING on the Web! During a recent 6-week period we sponsored 7,239 new distributors in 106 countries worldwide and we''ve only scratched the surface! We did it 100% via the Internet using the remarkable new system designed by SFI Marketing Group Founder, Gery Carson. Network Marketing on the Web has arrived! Learn how we are sponsoring 1000''s monthly Worldwide without mailing, faxing or calling anyone! Enroll in our FREE Internet Income Course. Totally Internet and system-driven. Do it Now! No obligation. Want to know more? You can test drive the system FREE. Do it Now! â€"â€" then watch the magic! http://www.sixfigureincome.com/free/?119282 SIX-FIGURE INCOME MAGAZINE ANNOUNCES NEW AFFILIATE PROGRAM Through SFI's FREE Affiliate Program you can earn hundreds of dollars every month on sales of subscriptions to Six-Figure Income Magazine, advertising in SFI Magazine, and on dozens of SFI's exclusive informational products and business-building services. Everything you need is provided: FREE fully-integrated Affiliate Website FREE Sample Ads FREE full-color Internet-ready banners You also receive: FREE lifetime subscription to the exclusive Six-Figure Income Newsletter featuring marketing tips, secrets, & techniques; how-to articles; latest home business news & stats; special, unpublished excerpts from SFI's exclusive magazine interviews; plus other invaluable articles, insider strategies, and information from the planet's highest-earning home business entrepreneurs ($149 value!) FREE Internet Incomeâ„¢ Course ($295 value!) ACT NOW and SFI will jump-start your new business by also including you in their international co-op advertising program â€" FREE! Sign up now at: www.sixfigureincome.com/free/?119282 www.sixfigureincome.com/free/?119282 Martac Inc. MarTac Inc. Describes itself as being the "Simplest
Home-Based Business in America". While I don't know if that is
true, I do know that they have a reasonably uncomplicated, easy to run
program. Simply put, the company's product is a book containing a number of certificates, each of which allows the buyer to receive $100 or more worth of the grocery coupons of the customer's own choice for only $15. The program puts you in the business of showing people how to get the book for themselves thus saving a significant amount of money on their grocery bill. They in turn show others how to do the same and as the group grows so does your income as you receive an override from all of these sales. No face to face selling is required and it can be done strictly by mail order. While
it is not a glamorous product, it does have an extremely broad market.
According to the company's research, National surveys show that approximately
90% of all households use coupons. The program does quite well when
subjected to my 10 point test. 1. The company has been running its network marketing program since 1993.
2. The company has a customer service department, 24 hour voice mail messaging on an 800# and a fax #. They even have what they call a "Mission Control" program which for $15 per month provides you with things like unlimited home office consultation, mailing of information packets on your behalf direct to your prospects (at no charge to you), use of the company 800# for response to your ads (also at no additional charge), regular downline reports, monthly business builder newsletter, discounts on sales materials.
3. On the subject of product, the company has a product that appeals to almost the entire household population of the United States. And, its a consumable product. This of course means regular repeat business for you.
4. The payment plan is easy to understand and provides for weekly as well as monthly payments. It is designed around a simple 2x6 matrix or "cell" that you can understand and explain easily to others.
5. You can get started for as little as $25 ($40 if you sign on for "Mission Control")
6. You can maintain your position for
as little as $15 per month by remaining a subscriber. This entitles
you to $1 00 worth of grocery coupons of your choice. So, if you use
grocery coupons, the program costs you nothing. In fact, it costs you
money NOT to subscribe. As indicated earlier, for an additional $15
per month you can have "Mission Control". If you are serious
about your business, it pays to invest the extra money. Having someone
from the company to talk to and send out your promotional materials
makes it a bargain. 7. This business can be run anyplace and any time of the day. You can work from wherever you choose and whenever you choose. You can do face to face selling, no face to face selling, or anything in between.
8. If you can sponsor just two persons and work with them to sponsor two each, you will make money with this program. It is not a hard sell because it is something most people use anyway, and the price is certainly right...it costs money NOT to subscribe. It is always easier to sell savings and, that is exactly what you are selling here. It will take time for the momentum to build, but if you and each of the people under you concentrate on getting those two people the results by the end of a year will astound you.
9. The company provides you with professional quality. camera ready artwork, flyers and brochures. It also sells at nominal cost (or sends out on your behalf as a "Mission Control" member) a 20 page report in book form which is a quality piece and an excellent sales tool.
10. The company is quick to point out
that your success is dependent on your effort. It does however provide
the ability for you to realistically obtain a six-figure income and
qualify for a generous car allowance, vacations and other perks. Those of you who are interested in obtaining
additional information direct from the company can contact them by writing
or calling: MarTac, Inc./ Reference BC-9102 The Professional Center, Suite 125B 1301 Allegheny Street Hollidaysburg, PA 16648 1-800-962-7822 or 814-696-9130 Fax: 814-696-9365 Watkins Incorporated Watkins Incorporated Founded in 1868, Watkins is the oldest direct
sales company in the world. It offers name and product recognition and
offers a money back guarantee on all of its products. Its product line
includes over 350 items, 90% of which are manufactured by Watkins. With
respect to my 10 point test, here's how the company does: 1. Watkins has been in business/direct sales for over 120 years. For those of you who reside in Canada, Watkins has been in business there for over 75 years. If you are looking for stability and an established reputation, this is the program for you.
2. The company has a complete customer service/support staff that provides an 800# for customers to order direct from Watkins. You never have to purchase inventory, stock or deliver products. You can even sponsor Representatives by telephone.
3. The Company has high quality, highly consumable products that appeal to a majority of the population. Watkins research shows that every month the average family spends $80 or more on the very products that Watkins sells. Watkins price comparisons show that many of the products actually cost less than their similar "grocery store" counterparts.
4. Simply put, there are two ways to earn money with Watkins. The first way is thru direct marketing of their products. As your monthly dollar volume grows, your profit percentage increases from 28% all the way up to 61%. Secondly, you can earn income by finding and helping others build a Watkins business. Watkins is a rock solid multimillion dollar corporation that will track, process, and pay your commissions on a timely basis.
5. You can get started for as little as $33.90 including S&H. This includes not only all of the sales and training materials you need to start immediately but, it also includes $28 in full size products for a total $75 retail value.
6. The Company does not require any additional personal purchases or monthly fees. All of your resources can go into building your business. You should however always be familiar with and use the products you promote whenever possible. Your whole attitude changes when you actually use and believe in the product.
7. The Company offers a number of options and ideas for running your business. All of them allow you to work whenever and wherever you choose. Some of them even allow you to put your business on remote control after a period of time.
8. Like any of the programs I have included in this book, you can earn income from sponsoring just a few persons. Your income growth will however, depend upon your ability to encourage your few to each sponsor a few and so on. The Company does offer support and as indicated earlier, the contact listed is part of the largest organizations within Watkins. They offer additional support in the form of newsletters, promotional materials and ideas for beginners on marketing a new business. If you follow through and follow their simple directions, you should succeed.
9. The Company has a wide variety of sales literature and sales aids of every nature and description available for selling products or sponsoring new members. Much of the material is available in full color at a very reasonable cost. IF YOU CHOOSE, you can even attend FREE training seminars and meetings sponsored by Watkins. Please note that the sponsoring information given would place you in the downline of one of the most successful Watkins Representatives. In connection with this, upon becoming a participant, you would receive a FREE COPY of their book "Laying the Foundation for Your Watkins Business". The book contains over 130 pages of tips, strategies, planning guides etc. to help you start and succeed in this business.
10. The Company is very honest about
the fact that your results will depend on your efforts. But even part-time
effort will yield excellent results if you follow thru. Even mailing
10 postcards a day will eventually yield results if you do it EVERY
WEEK. For additional information and registration
contact: Watkins Incorporated P.O. Box 5570 Winona, MN 55987-0570 For telephone sign-ups with- a credit card: 1-800-833-2113 ID# 025993 Canadian Residents: Watkins Incorporated 77 Irene Street Winnipeg, Manitoba R3T 4C7 For telephone sign-ups with a credit card: 1-800-375-1114 ID# 025993 Life Plus Life Plus is the first and foremost the manufacturer of clinical quality nutritional products. They have been in business since 1936. The Life Plus product line includes not only the really hot items that everyone wants now but a wide variety of high quality consumable supplements to fit everyone's needs. All of the products are manufactured in the U.S. and, with over 27 quality control procedures in place you can feel comfortable using and referring others to the products. Since you are purchasing direct from the factory, the pricing is also quite competitive. Once you register and purchase $40 worth of products you become a distributor for life. As far
as my 10 point test is concerned let's see how the Company stacks up: 1. The company has been in business since 1936 and has a well established network marketing system in place.
2. The company has a 24 hour a day voice mail system that can do everything from take orders to faxing information of every nature and description 24 hours a day. So you can have people sign up, order and obtain all of the product and company information they could ever want without ever speaking to you.
3. With regard to the products, they are very high quality, appeal to a large segment of the population and are highly consumable. All you need to do is ask and you will be able to obtain dozens of testimonials from people who are thrilled with the results.
4. The payment plan is very simple. As long as you order $40 worth of product during the course of the month, you will receive commissions on the purchases of everyone in your downline thru 6 levels. They do have provisions for what they call an "infinity bonus" for persons who create large downlines. By the time your business grows to that point I'm sure you will know exactly how it works.
5. You can actually get started for FREE. Just call and register and they will assign you a distributor ID#. However you will be better off if you know and use the products and you will not receive commissions on sales if you have not purchased $40 worth of products in that month. The company does however have a wide selection of materials and sales aids available at a nominal cost and your $40 purchase can consist of sales aids.
6. You do not need to purchase anything ever again. You will remain a distributor for life. If you wish to receive commissions however, you need to purchase $40 in product to receive those overrides.
7. This business does not require you to do any face to face selling and can be done from anyplace you choose. Some people do nothing but mail postcards and or other sales materials. Since the company offers such excellent support, they leave it to them to answer questions, send info, take orders, etc.. You can start and grow your business this way but it will take longer and be more expensive. Many people will not be "sold" on a program over the phone by a stranger, sometimes a "real" person is the difference between yes and no.
8. This business will require a steady pace to grow and gain momentum. You will begin receiving overrides from the first person you sponsor but it will take a while before the duplication effect kicks in to reward you with large override checks. This is because you are receiving a 6% commission on your first 3 levels and it will take a period of time be | |