Network Marketing: Good Sales vs. Bad Sales

by admin on September 9, 2015

Recently separated from my husband, it has come down to two options. Either I go get another job and build someone else’s business …or I build my own. I choose option two. And I choose to do it in network marketing.

bill-gates-mlmI have been in and out of various network marketing companies for the last 10 years, and I have done reasonably well when I focused. But now it’s time to bring the vision I once had of building a residual income with network marketing business to reality so that I can have the freedom in my life to travel and do the things I love …when I want.

For the last 6 months, I have been on my own with my kids half the time, and I have put everything to do with my home based business on hold while I figured out a long term goal for myself (and enjoyed the summer). But now I am ready. I am ready to work my business and help others build theirs, and I have found a company that I believe in.

Isn’t it strange how things always happen for a reason? I mean… my separation actually lead me to this business.

Anyway, the point here is that I want to share something I learned today about how all sales are not created equal. In network marketing, the type of sales you make, can make or break your long term business sustainability.

Good sales come from a place of want or need in the customer.

Bad sales come from a place of greed.

If someone buys your network marketing product or service because the want it or need it, chances are very good that they will continue to reorder whatever your a selling. Finding customers and making good sales will create a strong residual income for you and your family over time. Plus, you will feel good making that kind of sale. It’s fun.

However, if someone joins your company because they see it primarily as a way to get rich, chances are high that they will not keep ordering the product once they get frustrated with the business. It’s not good for anyone.

Here are a few questions to ask yourself if you are struggling with whether or not to join a certain network marketing company:

Would you order the product or service if there was no opportunity attached?
If you would make the purchase regardless of the business opportunity, this is a good start to making good sales. However, it’s not the only factor. Some companies have great products and a terrible business plan. You want a product you believe in so that you can feel good about yourself AND a great business to complement it. I personally use products from several companies but that doesn’t mean I sell them all. I have one company that I am building as a business even though I order from several.

Would you feel compelled and excited to tell others about the product?
Feeling comfortable talking about your business or product is important. After all, network marketing is primarily a word of mouth business. And when you are excited and believe in what you are selling, then you are giving value to people, not just ‘making sales’.

How much does it cost to join and how much is the monthly autoship cost?
I tend to steer clear of companies that want you to buy thousands of dollars of products up front. It may seem like a good way to acquire ‘inventory’ but the products usually end up on your garage. It seriously doesn’t take a fortune to start a successful network marketing company, and that’s part of the reason of recommend it. A reasonable start up cost would be $100-$500 (in product/service that you want and will use). After that, you can add to your inventory over time. A reasonable autoship would be less $100. A hundred bucks a month is a very reasonable cost to run a business, especially if you feel you are getting value for your money and can write it all off for tax purposes.

Is your compensation based on selling products or on recruiting members?
If you get paid to recruit people, then there’s something a little shade in the mix. A legitimate network marketing company should pay you well, but it should be based of your sales, and on how well you support and train others to do the same.

Network marketing is a powerful vehicle that can help you reach your dreams if you do it properly and have fun along the way. So once you deicde on the company you want to be a part of, have fun making good sales.



Here is a list of things to look for if you are trying to choose the best network marketing company for you. Keep in mind that the company I choose may not be right for you, but this list is generic and should help you keep things in perspective. It’s a list I made based on my experience inside several network marketing companies over the last few years. I hope it helps you clarify what you are looking for.

1. Products you would buy regardless of if there is a business opportunity.

If you would order your mlm company products even if there was not opportunity attached, it’s an indication that you will be able stick with it. It means the cost is not an ‘out of pocket’ expense because you would be buying them anyway. And if you would buy them, then others probably would too and that means customer reorders. Having products that you want, as opposed to being obliged to purchase them is a key factor to consider when choosing the best network marketing company for you.

2. Reasonable Autoship

Most network marketing companies have only one criteria for distributors and that is to order some personal products on a monthly basis. Some companies require as much as $160 per  month in order to be eligible for commissions. While that’s not a high cost to run a traditional brick and mortar business, it is high for network marketing …especially for customers or for distributors who aren’t making money yet. A monthly autoship less than $100/month including all shipping and taxes is a more reasonable cost to run your business.

3. A strong team who knows how to market

Although your success will depend on YOU …who you work with really does matter. Most people teach you to make a list of your friends and family to market your business. But unless you enjoy doing home parties, this method is not very effective because your friends and family are not your best prospects. It’s much better to surround yourself with people who know how to market effectively and learn how to get in front of people who are actively looking for a business. Which brings me to the next point…

4. Ability to market on the internet

Believe it or not, there are network marketing companies who do not allow you to market on the internet. But being able to market using technology is extremely powerful when done right. Spamming your link on facebook is not a good way to promote your mlm company. But if you know how to set up a funnel for your business where people who WANT more information put their name and email in a form, then you can follow up with them personally and help them get started. It’s way easier to help someone get started in network marketing who has asked you to help them than it is to convince a family member to buy your product and sign up to get discounts.

5. International presence

If you choose a network marketing company that is international, you can literally build a ‘work from anywhere’ business that you can run whereever there is an internet connection. That’s what I do. Make make sure your company allows cross border sponsoring. Some companies are open in several countries but you can only sponsor in your own country. That just doesn’t make sense to me. You should be able to market globally and sponsor globally

6. Integrity

Have a look at the people behind your company. See who they are, what their vision is, and how they are giving back. It is nice to support a company that is giving back to a good cause.

7. Timing

The ideal time to join a network marketing company is after it’s initial startup year (avoid pre-launches) but while it is still approaching or just hitting ‘momentum’. Joining a company at the right time can sometimes make a huge difference to your mlm success. That being said, what you do with any opportunity is up to you. You can do well in any company if you apply yourself. It just gives you an extra edge if you get the timing right.

8. Compensation Plan

There are a few different MLM compensation plans and it is a good idea to familiarize yourself with the plan your company offers, just so you understand where your money is coming from. Not all compensation plans are as lucrative as others, but on the other hand, if you spend too much time analyzing, you may never get started. Two things to consider are how much you get paid up front when you sponsor people, and how you earn residual commissions when people reorder. You should have a nice balance of both so that you can make money now and leverage your efforts over time.


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