Recruiting for network marketing question

Quote:

Originally Posted by bridger480

I thought MLM was like pyramid schemes and Avon. Is that true?

MLM are not like pyramid schemes.

Pyramid schemes are simply recruiting other people for a so called "business oppurtunity" and then taking people's money. There is no transfer of any tangible product or service.

Multilevel marketing companies, on the other hand, offer products. They are based on word of mouth or referrals from independent distributors for the company and then are compensated for referrals for people who actually buy the product.

A true pyramid is the corporate structure. Think about it..

You have the officers (CEO, CFO, etc) and Board of Directors at the top making the most money. Then you have middle management which consists of more people. Then on the very bottom is the employee doing the most amount of work and receiving the least amount of money typically.

I forgot to answer the second part of your question.

Avon is a good example of a network marketing company. As well, other examples are those like Quixtar (Used to be Amway, but Amway exists only at the international level and do not operate in the United States).

Another very good model is the tupperware parties thrown in the homes. At the end of very product demonstration, the host always asks if someone would be interested in throwing a tupperware party and be compensated for it as well.

Quote:

Originally Posted by msanti85

Pyramid schemes are simply recruiting other people for a so called "business oppurtunity" and then taking people's money. There is no transfer of any tangible product or service.

Multilevel marketing companies, on the other hand, offer products.

Thank you for clearing that up for me Msanti85. I hope I'm not the only one who didn't know the difference.

My neighbor wanted to sign me up for Quixtar once. As I remember it the basic idea was that I could buy products direct from Quixtar instead of a local company. I usually get what I need from Costco and the local Farmer's Market so that idea didn't make much sense to me.

I understood that if I signed someone up that I would earn money from their purchases too. You can probably see my challenge with that... why tell them to buy from Quixtar when you can simply go to Costco or the local Farmer's Market?

Quote:

Originally Posted by bridger480

Thank you for clearing that up for me Msanti85. I hope I'm not the only one who didn't know the difference.

My neighbor wanted to sign me up for Quixtar once. As I remember it the basic idea was that I could buy products direct from Quixtar instead of a local company. I usually get what I need from Costco and the local Farmer's Market so that idea didn't make much sense to me.

I understood that if I signed someone up that I would earn money from their purchases too. You can probably see my challenge with that... why tell them to buy from Quixtar when you can simply go to Costco or the local Farmer's Market?

The biggest idea is simply replace where you go shopping.Instead of going to the pharmacy to get a bottle of advil, the grocery store to pick up toliet paper, and Costco to pick up 1400 paper cups for that party that is coming up, you replace where you go shopping and spend your money. Essentially you are changing your buying habits. Instead of going to Costco, you save yourself TIME because you can order right off of the Internet and then have all you products delivered to your door in a few days.

A big philosophy of the financially independent and top 1% income earners in the United States is having complete control over their time and money. Quixtar, for example as you mentioned, allows you to not have to deal with getting in the car, driving to the store, shopping for an hour or two, waiting in line for ten minutes to pay for your items, waiting in line again at the door of Costco so they can check your reciept, loading up the car, and then driiving up. That's a lot of work compared to when you can just order from one website and they are willing to give you a percentage of what you ordered back.

Besides, Costco has only limited hours and you must plan ahead of schedule for that. A company offering goods for sale over the Internet can be ordered any time of the day.

You may have to do some searching as to whether this is right for you or not. Maybe it is or maybe it is not the right time. If you have any other questions, please feel free to keep asking. I hope thi all helps.

Thank you for the great information Msanti85.

Quote:

Originally Posted by bridger480

Thank you for the great information Msanti85.

Bridger, you're welcome.

There are all the cliches and models, opinions, and buzz words anyone would want to put the business activity known as network marketing into a perspective of some kind. Some use conventional sales terms while others use MLM jargon [or a combination].

But just like in other kinds of business activity, what's inside all the lenses we look through the actual environment of network marketing is always worlds apart from the lense we use to magnify.

Of course products are purchased and sold and commissions are paid to distributors on the sale of products. But the model of duplication to produce layers of sales is unique to network marketing though some have compared it to layers of management in conventional sales and marketing - not necessarily a good comparison.

Also, network marketing as multi level layers of product distribution has been compared with franchising - home based franchising. In network marketing a business opportunity is marketed as well as a product and the quality of the network has a lot to do with the quality and quantity of distributors pursuing a business opportunity.

Teaching, coaching, mentoring - all of that come into play from what the company offers distributors trying to shape layers of distributors into their networks to what "sponsors" or business partners offer. Quality long term working relationships are crucial to successful network marketing. Without that sales alone will never build an income putting one in the top 1% or 3%.

People who join a network marketing company do that for all kinds of reasons often to purchase a product at a discount - also to be a part of something, for the friendship and social aspect - and the typical distributor or rep will earn $50 a month - maybe a few hundred dollars a month now and then.

It's a very small percentage who actually earn high five and six, or seven figure incomes - network marketing is typically a four or low five figure extra income business which is what millions of people who need that little extra income want.

But to be very successful in that high range where six figures turns into seven requires the same dedication, discipline, constant study and personal perfection as any high level sales or sport activity success requires.

In that regard, leadership along with a strong work ethic and longevity is what produces the high end and sustaining income earners in network marketing.

Direct selling/network marketing is a policed and regulated industry and compliance is an impotant issue both in product and business issues. Some companies are publicaly traded and have been scored high by leading business magazines in terms of growth, profit, and other markers.

Quote:

Originally Posted by terriz

Any ideas? How is recruiting for sales people different than selling and what selling techniques could be helpful?

Terri did you come up with any other ideas?

Quote:

Originally Posted by SalesGuy

Terri did you come up with any other ideas?

Well, in the time since I wrote that first post, we've had better success with our prospects. I think some of the comments above about coaching skills are right on. Listening and responding is the most important skill (didn't I write that in another thread? I think that's a theme...

)

Ask about the person's needs, and see what happens. If you listen closely, you'll know soon enough whether they are a good candidate, and if so the relationship will evolve naturally as long as you don't "push for the close"! Let them close themselves. If they don't, it wasn't going to happen anyway.

Thanks all for your insights.

Peace,
Terri Z

Quote:

Originally Posted by terriz

Well, in the time since I wrote that first post, we've had better success with our prospects. I think some of the comments above about coaching skills are right on. Listening and responding is the most important skill (didn't I write that in another thread? I think that's a theme...

)

Sounds like a plan.

Recruiting for network marketing question

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