As business models go, Network Marketing is as viable as you will find. The promise of riches has lured many would be millionaires out of their normal day to day existence and 9-5 jobs. That same promise of riches and fame has also doomed many to failure.
Statistics continue to prove that nearly 97% of all network marketers fail miserably. Not surprisingly, these facts are rarely discussed during any network marketing sales presentations. Not only that but you will rarely if ever hear one who is successful in network marketing share how long they struggled before they found any success.
Truth is, most successful network marketers don’t reach any real level of success until their third or fourth try with different network marketing opportunities. Essential to the success of any network marketer is and will be an ongoing emphasis in the development of several key areas, an understanding of marketing, psychology and personal development.
Let us take a look at what Wikipedia defines as Network Marketing and then look further at why so many people fail and how to avoid the same fate.
Wikipedia definition:
Multi-level marketing (MLM), (also called network marketing, direct selling, and referral marketing,) is a term that describes a marketing structure used by some companies as part of their overall marketing strategy. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation.
Now as we dive further into the focus on our 3 key areas of development, the first one literally jumps out of the description of the plan itself and that is, marketing. As the name implies network marketing is going to involve on many levels a need to understand at the bare minimum principles involved in marketing people and or products. Without having an understanding in marketing principles how can one expect to succeed in a marketing business opportunity?
We are not suggesting that in order to succeed that you must have a degree in marketing but, the successful marketer understands the basics and builds upon that understanding.
Second is a working knowledge of the psychology of sales, networking and marketing as they relate to moving people to make buying decisions. Perhaps more than any other business model a person’s success is tied directly to moving people to purchase products as well as join business opportunities. Remember from the Wikipedia definition: The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors… You are put in the position of persuading people to join your business opportunity and in many cases to buy your products and services. Knowing the psychology of people and the psychology of persuasion is essential on ones continued success.
Lastly is the area of Personal Development which simply put is the pursuit to better one- self. Perhaps you have a fear of public speaking, then moving beyond this fear and becoming someone who can effectively speak in group settings and crowds could perhaps show you as a leader in high demand. Many successful Network Marketers also pursue developing their knowledge of copywriting which increases their effectiveness as it relates to advertising.
The area of Personal Development is also the most compelling because it challenges in many cases to step outside of our comfort zones. Many people who have joined Network Marketing business opportunities have never really tasted business success and the possibility of financial freedom attracts them. The fact that many have never been successful is reason enough to emphasize personal development. Why? Simply put, if you don’t know success you may not be able to handle success.
In many cases, we have to see ourselves as successful before the success even arrives. But know this for sure, that your success will ultimately be founded on hard work and determination as the great Michael Jordan once said, “I’ve missed over 9,000 shots in my career. I’ve lost almost 300 games. 26 times I’ve been trusted to take the game-winning shot . . . and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”
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