Wednesday, November 19, 2008
The Proper Amount of Leverage - Network Marketing's Advantage
Leverage is a very interesting concept that most of us rarely have the pleasure of being on the benefiting end of. We typically see it in place with our credit card obligation, where the card company has allowed us to leverage a good credit standing to issue use borrowing power, only to then leverage us with high interest rates, believe that we are "good for it" and in most cases we are, paying large amounts of money each year in interest.
Some of us have figured out how to turn the tables on leverage, at least in the world of finance and business, where our efforts and money do more than our limited means of earning and investing. Creating multiples, exponential multiples is what we target, where the growth is much more that our own ability to labor hour after hour to achieve a wealth for those we work for (those are the people who have figured at least part of the leverage concept out).
Now, not everybody is going to go out and build a business on the street corner, hoping to hit it big and retire young and rich. Many of us are lazy and are content to work for the "the man" or maybe we have a great fear because of the unknown and security becomes a comfort to us. Business building and financial independence just isn't worth the trade, the exploration of some people's abilities and desires.
Many people who want and are willing, try and try and try without success. Those are the people who have the willing heart but maybe needs some education that the failures are giving them, knowing that persistence coupled with improving over failure is a great recipe for achievement. Granted, some people experience an crash course on the way to tremendous feats, but even for those who tread through years of "education", all are noble efforts and patterns for gaining the desired results.
In the gamete of options for gaining your big business experience and achievement, network marketing has to be the new wave for the independent seeking the financial success and leverage is the quick key to unlocking the door.
Leverage is inherently available to the network marketers who is in it for serious business; not the casual dance in and out of the business, "looking" like he or she is involved, but down and dirty working with people; talking, training, developing, coaching others on what they have learned and assisting others on the way to their success.
This leverage is the same leverage that any and all BIG multi-national firms experience, having once started with just a great product or service to share with the world. Gaining the assistance of others who they hire to help and the leveraging those talents, abilities, languages, time, and more from others to build their dream. It is the vary nature of network marketing that has you getting others involved (hiring - without very much money invested in overhead on your part), teaching them about the business and you need them to do to help them be great at this business, which inturn benefits you!
There is something very noble about the true intent of network marketing (this is not to say that there aren't "snakes" in the industry - there are "snakes" in every industry, I am sure you could names some that you know) - this is to say that your success is dependent on your hard work in developing others. If you "trick", "deceive", "lie" about what the business opportunity is about or the product is for then you will quickly find that justice is served and your fraudulent nature pays you back quickly. The opportunities are as easy to exit as they are to enter.
Your ability to leverage your abilities through developing a business of people who are able to share and sell the products and services is an amazing reward at your doorstep. There is very little danger in starting your road to your own independence through a network marketing business. To build a team that will sell products an you have the opportunity to earn money on everything they do is one of the finest examples of leverage and is a brilliant way to do business. As the saying goes, "Take care of your people and they will take care of you" - day after day, month after month, year after year.
Check out this opportunity - click here to explore.
Monday, November 10, 2008
The Achilles Heel of Network Marketing
With the number of people who have ever been involved in network marketing, MLM (multi-level marketing) or direct sales, most of us are within a stone’s throw of somebody who has tried it or is currently involved and the future of these industries indicate that we will be even closer to somebody will try on this industry.
That shouldn’t be a thing that we need be weary about. This industry is just barely coming into a mature stage, where the experience of the pioneers of the industry are preparing the new up and comers with all of the experience they need to start with all of the benefit and blessing of today’s top investors, analysts, bankers and more.
The network marketing industry has created more independent millionaires from every walk of life than any other industry, not to mention many, many times that in people who are well into the six figures year after year.
So why does this industry have a bad reputation or tends to be a “lesser” business?
Among other things, the general challenge with the reputation and the “amiture” nature of network marketing comes in the very fact that these are amitures trying to start their business. People are generally very good and promoting; we promote all of the time - movies, books, food, wine, restaurants, vacations, airlines, and the list goes on and on and on and on. It is what we do.
So the natural ability in each of us is to talk about what we find to be good and great or terrible and poor. We learn of the products that network marketing companies have chosen to distribute through people (versus and retail or wholesale distribution). These products are good, legitimate, even very valuable in what they deliver and provide - there are no qualms about how valuable these products are (of course, there are exceptions to every rule, however those companies must face a competitive market place and can only last so long) and should not be knocked.
With good products and what should be considered and good commissioning plans (again, everybody has an opinion about which plan is better than the others) what is left is the actual people involved. With the natural talents of people to communicate, promote and thus recruit into the business, the industry typically have very little problem getting distributors to distribute the product . . . so what is the problem?
RETENTION - keeping people in the business, doing the business and supporting the success of the individual in the business.
The simplified experience of network marketing is that my best bud tells me about this amazing product that will change my life and provide me with such great changes in my life. I like what I hear and want to know more, so we talk to somebody who has been successful in this business and I am “sold” on what I want to have in my life.
I pay the fee and get my starter kit and my initial set of product. Then I am told to go and read online or the material set and to learn the compensation plan so I can go and do the same thing that was just done with me. If I can do that over and over again, I am good.
Okay . . . . I am ready . . . . okay . . . . I am wanting to get going . . . . . ummmm, what do I do again? How do I do that? Who should I start with? How do i say that?
I am quickly all alone, except for the periodic phone call to make sure I am still ordering product or trying to find people.
Three months passes, I evaluate my situation and think that either I am going to quit this so I don’t waste anymore money or maybe I like the product and I just continue to use that because I experience the value in the product . . . all in all I chalk it up to “experience” and end the business with a bad taste in month about really being able to make money in network marketing.
So, when my next buddy comes to me about a new opportunity he is looking into, he sees me chuckle like, “you will never make money doing that.” And like every promoter, I am good and passing on my experience (whether legitimate or not).
We typically find those who don’t succeed at network marketing (at least to their expectations of amount of money made or the actual work you have to put into it) are the most vocal. Probably not the people you want to listen to when considering an opportunity, at least not without finding somebody on the opposite spectrum to get another opinion.
We can only imagine how much more success the industry would have if part of the distributors ability, in addition to promoting, was retaining. To train, teach, education, assist those who are willing to put in the effort. To avoid the greed of success and help newcomers to get paid and to be a part of something - a community.
Retention is one of, if not the biggest pain point for every network marketing company. It’s ease of entry is such a strength to each companies success, but the ease of exiting becomes more of a focal point when companies get past their startup success and often find that they need a whole new field of leadership to develop people instead of the distribution of product.
When considering the opportunities to make some extra money in the network marketing/mlm/direct sales industry, consider the team you are joining and what they do and how they keep you engage and involved and successful in the business you are joining.
If you are searching for something new - contact me, I’d be happy to share with you some insights and strength I have seen and been involved in.