5 Tips for MLM or Network Marketing Success

Over the three plus decades I've been in the MLM / Network Marketing profession, I've learned a few things. Mostly I learned them by making lots of mistakes, but a few I learned from other top income earners. In this article I'm going to share 5 of my favorites. These are not theoretical ideas, but rather things I've done to build several large and lucrative businesses, a couple from which I still earn very nice residual incomes. The key to these MLM / Network Marketing success tips is that you can't just read them. You have to put them into action in your business. The Bible tells us that we need to be "doers of the word", which means that it's great to read about these five powerful business building tips, but until you become a "doer" nothing will happen. So, I encourage you to study these tips and think about how you can implement them into your business today, this week, this month.

Okay, here we go:

Tip #1: Treat Your Business Like a BIG Business

Treat your MLM / Network Marketing business like you invested a million dollars to get it started, rather than as a hobby you work when you have time and you will see much quicker and bigger success. If you invested in a McDonald's franchise, you would work 15 hours a day for years to recoup your initial investment. The problem with network marketing is that it doesn't require a big investment, so people don't treat it like a big business. Yet, the potential income in network marketing is much higher than with a McDonald's franchise. So, treat your network marketing business like a big business by investing the hours every week to build your network.

Tip #2: Set up a designated business area in your house.

If you can spare a bedroom, do it. If not, at least have a desk in the corner and partition it off for your office. This will help you in two ways. First, you will be able to deduct that area of your home on your taxes. Second, it will help you know when you are working and when you are not. If you have a family, make sure they understand that when you are in your office, you're working and are not to be disturbed except for an emergency. That way you will be able to focus without constant interruptions.

Tip #3: Introduce your business to at least one new person every day.

It could be someone you know (from your warm market list) or someone you meet. If you do this 6 days a week (take Sunday off) and 50 weeks (take 2 off for vacation), you will prospect 300 new people each year. With just a 10% closing ratio, you would add 30 new people to your team each year. Now, imagine if they all did the same. It's as easy as saying, "Say, would you be interested in making some extra money, if it didn't jeopardize what you are doing now?" OR "You seem like a sharp person, do you keep your eyes open for ways to make extra income outside of what you do now for a living?" The key is to find a question that works for you and ask someone new every day.

Tip #4: Do What Business Owners Do

When you join an MLM / Network Marketing company, you are in business, so do what every other business owner does - create a business entity (sole proprietorship, partnership, LLC, corporation) and get licensed in your state. Get an EIN (Employer Identification Number) from the IRS and then set up a separate bank account. All your MLM income and costs should flow through that account. This will keep you legit with the IRS and will give you the right business mindset to achieve success.

Tip #5: Find a coach.

Every athletic team has a coach and every top network marketer had/has a coach. The best coach is an upline leader who has already achieved success in your company. Ask them to devote time each week to coaching you. The key is to do what they say. They've been there, done that, got the t-shirts, so all you have to do is listen and follow. If you join my MLM Tip of the Day list and community on Facebook, you can be part of my exclusive Group Coaching program. Go to www.DailyMLMTips.com and subscribe to the free list or find the MLM Tip of the Day group on Facebook and join or do both.

There you go. Remember, it's one thing to just read through these 5 MLM / Network Marketing success tips and think about them and it's another thing to put them into action in your business. So, I hope you will study them and then become a doer!

My Favorite MLM or Network Marketing Tools

A Remarkable Business

Del was sixty-two and three years from retirement when he walked into my sales and marketing class. He had done what everyone told him and socked away a nice nest egg in his company 401k plan. Del and his wife would be able to live quite nicely for the rest of their lives. Well, at least that was the plan. Then his company went bankrupt and he lost everything. That day, Del asked me how to re-build his mid-six figure retirement plan within the next three years. I told him that there was only one way – network marketing.

Patti was a single mother of six children living in a rural town with a population of only 8,000 and had just lost $75,000 in her traditional business. She had researched all kinds of traditional businesses and franchises, but there seemed to be only one type of business that would enable her to stay home with her children, quickly pay off the debt, and earn a nice six-figure income within the next five years – network marketing.

Collette was a single mother of five children, of which two were seriously ill and required regular medical attention.  She was deeply in debt and could only work part-time as a secretary.  The medical bills were piling up and the future looked very bleak.  That was when she was introduced to a fantastic home business by her brother.  At first Collette didn’t think she could be successful, because she had never operated a business before and had no sales or marketing experience, but this business was different. It seemed to be her answer from God – network marketing.

What’s remarkable about network marketing?

The incredible, almost unbelievable stories and these are just three of the thousands from the network marketing industry. It’s truly a life altering business and how many other types of businesses can you say will radically change your life? I certainly haven’t found any others. I mean really, name me another type of business where a twenty-three year old carpet installer with an injured shoulder and no money, or a seventy year old butcher, could become millionaires within a few years. Network marketing is the only answer.

Oh, here I am ranting and raving about how amazing network marketing is and you’re probably wondering about Del, Patti, and Collette.

Well, Del did rebuild that retirement plan in three years, but he was having so much fun, he didn’t want to retire. Patti has stayed home with her children, paid off the debt, earns a nice six-figure income, and now has several of her children who have joined her in business. Collette continued to work part-time, building a network marketing business and is now the top income earner in her company.

Network marketing is the most remarkable business I’ve ever seen and since I’ve been a business consultant for many years and have thoroughly researched thousands of businesses, that’s quite a statement. It’s the only business I’ve ever seen that enables the average person, regardless of age, gender, financial situation, past experience, education, knowledge, or even language, to start a business with little to no money and in a few short years are living the lifestyle of the rich and famous.

Can anyone be successful in network marketing?

Since my entry into the industry in 1979, I’ve had the good fortune to interview hundreds of the top income earners and I can honestly say that “YES” anyone can be successful in network marketing. Now, don’t stone me. I didn’t say that everyone would be successful; I just said that everyone could be successful, because I’ve seen people from all walks of life achieve high levels of success in network marketing.

I don’t believe that anything in this world is perfect, but network marketing is as close to the perfect business as I think you will ever find. If you’re looking for a business, you will find nothing better than network marketing – low start-up investment, proven turn-key system, high quality products and services, outstanding training and support, quick compensation, movable, unlimited growth, no employees, very little overhead, can be operated from home either part- or full-time, and produces long-term residual income, just to name a few reasons why you should seriously investigate this truly remarkable business.

If you are currently in network marketing or were sometime in the past and have never been successful, perhaps you picked the wrong company, product/service, compensation plan, timing, or upline. Many people get into the first network marketing company that comes along, without doing any research or due diligence. Uncle Joe, who doesn’t have any money and has never owned a business, shows you a network marketing company and it must be good, right? I don’t think so. Not every company is right for every person. You’ve got to find the right one for you. 

However, once you find the right company, then there is just one secret to success – WORK! I know, you were hoping for that get rich quick deal – well get over it – they don’t exist. Network marketing is a real business and it requires work – prospecting for people interested in your products/services or business, presentations, answering questions and handling objections, follow-up, sponsoring, training, and supporting. If you do these things and treat it like a real business, in time, you will be successful.

Who knows, perhaps some day you will be like Del, Patti, Collette, and so many others who are enjoying true financial security and the time freedom to really enjoy life. Yes, network marketing is the most remarkable business. My question for you is: “Will you do your research to find the right company, and then work hard and smart, so that some day other people will share your remarkable success story?

How to Keep Your Downline

As a veteran network marketer, top income earner, author, coach, and speaker, the most common question I hear and the biggest challenge faced by most network marketers is how to keep your downline. During my first 15 years in this great profession, this was a major challenge for me and my answer was always to sponsor more people. In one company I personally sponsored over 150 people and never earned a full-time income. It wasn't until I learned how to keep those I enrolled that I started making a big time income.

Here are the three things I do (and the other top income earners do) to keep my downline:

1. Help them earn money quickly - My first goal with a new member is to help them earn enough to cover their monthly product purchase. Next is to help them earn $500 above their product cost. At this point, they can't afford to leave. Finally, I want to help them earn enough to quit their job and enjoy true freedom. So, your first step is to work with an upline leader to figure out what a new person would have to do to earn their monthly product for free, make an extra $500 per month, and develop incomes of $50,000, $100,000, and $200,000.

2. Get them hooked on your products/services - This way at the very least, they will be a product/service user for life. First, is to make sure they have a personal experience. Second, provide them with information that shows why your product/service is unique, proprietary, patented, exclusive, and better than all the competitors. Third, help them introduce your products/services to their friends and family, so they can build an array of testimonials from people they know.

3. Recognize them - Most people go through life feeling underappreciated. You, as their sponsor and upline leader, have a chance to change that. Recognize them for the smallest of things - attending a meeting/conference call/webinar, making their list, setting up their company web site, going through the company training program, contacting their first person, setting up their first 3-way call, enrolling their first customer/member/distributor, achieving their first rank advancement, and so on. People will often do more for recognition, than they will for money, so recognize them often.

If you do these three things consistantly, you will retain a much higher percentage of your team. Don't get discouraged when some still quit. Remember that this business is only for those who are willing to do the work to succeed. If they aren't willing to do the work, there is nothing you can do for them. Wish them well, let them go, and focus on those who are putting out the effort. The result will be a solid and loyal team.
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Rod Nichols has been involved in the network marketing profession since 1979 as a company founder/operator, distributor, coach, trainer, speaker, and author. Several of his books have been industry best sellers and he has trained tens of thousands of people on how to be successful in network marketing. Recently he was featured in Better Networker's The Definitive Guide to Home Business Success - http://jvz6.com/c/79637/23465. He is also the publisher of The MLM Tip of the Day - www.DailyMLMTips.com. For more information about Rod, go to www.RodNichols.com.