Network Marketing Explosion – Understanding How Network Marketing Works!
In recent years, network marketing companies have started in utilities and telecommunications, including local and long distance services and mobile phones.
Other network marketing companies have developed online services or website products. Today, virtually everything is available from a network marketing business.
Over 2,000 companies in the United States are network marketing companies (MLM’s) and they made over $28 billion in sales in the past year. Network marketing companies employ 13 million people as independent sales people.
This type of business model is here to stay.
Network Marketing And The Principle of Relationship Marketing
Unlike traditional companies that sell to the public, MLMs work on the principal of relationship marketing. Each distributor shares the opportunity with his contacts, friends, family and co-workers.
Usually, one of these individuals is interested in becoming a distributor and will also share the opportunity with his contacts, friends and relatives and so on.
The system works because each distributor has a vested interest in making it work. The distributor receives a percentage of the sales of the people he has recruited. As well, each distributor is also a consumer of the product being sold. Product and brand loyalty is fierce. There is no need for a store. Everything is sold direct to the consumer and the actual products are shipped to the customer from the network marketing companies warehouse.
How Are Network Marketing Leads Generated?
A distributor has only so many friends, relatives and contacts. What can be done to enhance sales and attract new recruits?
One way is to think of the word FROGS. Friends, Relations, Occupational, Geographic and Social and from the names that pop into your head make up and maintain a list of 200 people you can contact about your network marketing opportunity and business.
Another way is to consider buying network marketing leads. Companies such as MLM Lead Genie provide leads obtained from newspaper, direct mail and Internet advertisements. They then compile the names and contact information according to phone numbers, e-mail addresses, survey data, gender specific groups, area code, and other categories.
In every case, the leads represent people who have indicated they have an interest in working on their own as a distributor for an MLM. Prices of lead lists vary depending on the category and number of leads ordered.
The distributor uses the lists for his/her own preferred method of contacting new prospects. Because the people to be contacted want to be contacted, the distributor has a greater chance of getting recruits than with a scatter-gun mailing to people who may or may not be interested in the product and business opportunity.
In addition to buying lists of category specific leads, distributors can purchase the MLM Genealogy Lead List, which provides more than 4.1 million leads with names, telephone numbers, fax numbers and e-mail and mailing addresses. This set of lists is sold to the distributor on a CD.
There are also services, such as Go Leads.com, which offer a monthly access to the company’s computer database. Go Leads.com offers leads to 13 million businesses and 200 million consumers in the United States.
The Internet is filled with ideas for increasing leads and multiplying sales. There is a book of customized sales letters that can be downloaded and used in mailings. As well, there are networking events, blogs, websites, books, newsletters, forums and focus groups to share information on generating leads.
There is also WAHM, the work at home moms network, and the Parentpreneur Club, offering advice to mothers and parenting couples respectively.
Several journals and online newsletters can be found online, including Network Marketing Times Online and the Network Marketing Business Journal.
Google Adwords can also be a good source of new leads.
While network marketing work on the principal of relationship marketing, the most successful distributor is one who looks beyond relationship boundaries and works hard to attract new clients and recruits.
I hope this is useful to you.
Mark Ford – Digital Entrepreneur, Marketer, Mentor
Six Figure Mentors Elite
Black Founder Member Digital Experts Academy
< Skype Mark Ford: nm.publications.mf
Connect with Mark on Facebook
Connect with Mark on Pinterest
Connect with Mark on Google +
- Network Marketing Tips With Jim Rohn
- Succeed in Network Marketing Tips
- Selling High Ticket Products Online
- Network Marketing Blog Posts
- The Jim Rohn Lessons In Life
- Network Marketing Sucks!
- The Right Mindset To Survive Network Marketing?