Big MLM Tip of the Day: The 5 Pillars of Success in Network Marketing #5 A Proven Duplicatable System

Everyone talks about having a system. What you should ask is, is it proven and duplicatable? 

First, is it proven, meaning has it been shown to get result? How long has the system been in place? How many people have used it successfully? A proven system will have a track record to back it up.

The next question is, is it duplicatable? Can anyone, with any experience or knowledge, be able to follow it? Are there any special skills required? Will this system work for anyone, at any level, and help them develop the skills to further their business? 

If you can answer these questions to your satisfaction, then you are doing great. 

This post concludes our discussion on the 5 Pillars of Success in Network Marketing, for now. For more detailed information download the MP3 file Five Pillars for Your Success.

If you are looking for a PROVEN, DUPLICATABLE system, which will work with any MLM business, for anyone at any experience level, check the Mentoring Resources.

Big MLM Tip of the Day: The 5 Pillars of Success in Network Marketing #4 A Comp Plan that Pays the Part Timer

For a network marketing company to be successful it needs to pay the part time distributor. 

If it is difficult to make enough money to cover their own monthly product order, people will get discouraged. 

In some comp plans, the top 3% distributors are earning 95% of the commissions. It can be difficult to break into the higher percentage category. If someone tells you about so-n-so who is making a kagillion dollars, what that really means is, nobody else is. 

We will look much deeper into the different comp plans another time. For now, it’s a simple matter of math. Start with a good round number, say $10,000, and figure out how many people you will need in your organization to earn that each month. Disregard any bonuses because those are not residual. 

Once you come up with this number, ask yourself, “How much money could a part time person make doing this?” 

For more info on the particulars of compensation plans, here is an MP3 file of a training call on this subject. 

Enjoy,

Bill

Big MLM Tip of the Day: The 5 Pillars of Success in Network Marketing #3 Exceptional Products

It is a given in this industry that you have to have outstanding products. Great products are the standard. 

Just remember, you do not have to love the product. Many people make the mistake of thinking they need to find a product they love, then have a hard time finding others who are as passionate about it. 

It is far better to find a product that people are screaming for and fall in love with THAT product. 

Also remember, you don't have to be a housekeeper to sell tons of cleaners, or a woman to sell millions of tubes of lipstick. 

Let that sink in for a minute.  

Now, stop back by this afternoon because I have a bit more to say about MLM Products.

Big MLM Tip of the Day: The 5 Pillars of Success in Network Marketing #2 Timing in the Company, and Timing in the Industry

First let's look at timing in the company. You never want to be in a start-up company. 

When over 90% of new companies fail in a year, it is best to wait and see how it plays out. If it's a good deal now, it will be even better in two years after it has stood the test of time. 

On the same token, you may not want to get involved with a really old company that has flat lined and is experiencing very little growth. It is really hard to build in some of these. 

Timing in the industry is important too. For example, let's look at technology: 

Most tech stuff that costs money today will be free in less than two years. How will you be able to compete if others are offering the same service for free? 

Telephone service is another good example: 

After long distance was deregulated in the 80's, companies sprang up overnight to take advantage of that. The selling was easy because people could save a lot of money. 

Today, with most people having unlimted long distance for a flat rate, such a business would be hard to build. 

Be sure the timing is right. 

Tomorrow we will discuss Pillar #3: Products.

Big MLM Tip of the Day: The 5 Pillars of Success in Network Marketing #1 Company Management Experience With Integrity

This post starts a 5 part series on the 5 Pillars of success in Network Marketing.  When looking at any network marketing company, Keep these things in mind. If it is not a 5 Pillars company, it will be difficult to build.

For any network marketing company to be successful, there are 5 pillars that must be I place. The first is "Company Management Experience with Integrity". 

What does this mean? It all boils down to who is running the company. What is their experience? 

There are a lot of company owners out there that cannot spell MLM. Has this person ever built an MLM downline? If not, he will likely have little respect for those who do. He will brag to his buddies about the huge volume HE is moving. Guess what bud, it's not you, it's the distributors. 

These owners with little experience are the ones who will have a policies and procedures that is 60 plus pages filled with legal terminology. This is normally because they came from the corporate world and decided to "TRY this MLM Thing".

The person with real world MLM experience doesn't do that. They respect the distributors because they were one. The corporate guys are the ones who will add all sorts of removal or termination clauses in their distributor contract. 

Bottom line, you want a company that is run by someone who knows MLM. You wouldn't take your car to a shop that was run by a barber.Why would you join an MLM company run by a lawyer?

Over the next 4 days we will cover the rest of the 5 pillars, but if you want to know more about them, visit the Mentoring For Free link on the Mentoring Resources page.