SBR Wellness is the name I've given my network marketing group. The topics I'll discuss here are those that I've been asked to address over the years I've been involved with my MLM Company, and it seemed appropriate to gather some of our experiences into one place. If you find the ideas useful, let me know, and if you'd like to pass on information that would benefit my group, then I'd appreciate that too.
The first question I’m always asked about MLM is “isn’t that a scam”. The answer unfortunately is ‘Yes’ and ‘No’. Let’s see if I can make that a bit clearer. Type “MLM” into the internet search engine of your choice and you will see thousands of results returned. They will vary from “all MLM’s are scams to “this is the best thing since sliced bread”. The real problem here is the overwhelming information overload. Many people thinking of taking up a part time business will be left no wiser irrespective of how much they tried to read and absorb.
So what is the truth? Why should anyone give up the time, emotional energy and yes some money to invest in a network marketing business? There is no doubt that there are some sharks swimming in the internet ocean looking for people gullible enough to part with their hard earned cash for nothing more than an empty promise. My personal experience is that how a network marketing business is perceived is based entirely on whether the person involved had a good or a bad experience. Apart from some obvious and deliberately dishonest practices, the difference between a scam and a great company is rather subjective; the same company can be called both by two different people with different experiences. That experience in turn depends on a variety of factors –here are a few of my favourites:
1. Do you truly want to be in business for yourself?
Not everyone does, and that is OK. Many people are satisfied with how much they earn the level of responsibility they have to carry, and the relative job security they enjoy. Some jobs, especially the professions are mentally demanding and even if you do wish to dabble in some extracurricular project, the firm may not approve. Getting distracted by your personal business venture may well be a career limiting factor. So if you are not fully committed to being in business for yourself, then save yourself a lot of hassle and don’t get involved. You can always enjoy products as a customer if you like them. However, if you answer is “yes absolutely, I want to see if I can be my own boss”, then make sure you have a very clear picture of why you want to be in business for yourself.
2. What sort of business should I be in?
It really depends on what you are capable of, and how much time you have to learn what you need to know and become successful. However, whatever you decide to base your business on, it must be something you are passionate about. If you are a professional, or have a trade, you may be able to leverage your skills into a solid self employment business. You need to take stock of your skills and abilities to see what you need to learn. You’ll note that I didn’t say to see if you have what it takes. Knowing what you don’t know is the first step, and sometimes the most painful to learn. Being a brilliant engineer does not automatically make you a good warehouse or purchasing manager. I started in Information Technology. However, I doubt I’ll ever finish learning about marketing and sales.
This is where network marketing can really help. I’m tempted to suggest that many if not most businesses fail because the owner and staff spend all their time planning how things will be done instead of actually doing them. If for example you have:
· Little or no experience with inventory.
A good network marketing company will handle all order processing, manufacturing and delivery. You don’t have to.
· No payroll or HR knowledge
Your MLM will handle all compensation payments. You don’t have to.
· No product development background
Find a company whose products are manufactured to very high quality standards, and preferably patented and certified by an independent body. You don’t have to invent your own.
· You know little about managing or presenting to large groups.
You can start small and grow as your ability and confidence grows. Eventually you could reach a size where the company will want to help you produce professional conferences.
Because the company takes on all of the basics, you have the time to focus your time and energy on the one thing that will ultimately make your business a success.
3. Does it involve selling?
Unfortunately this is the one thing that most people hate to do, and which is critical to your success. You have to get out there and sell. This is the point where most naysayers start yelling “Scam”. Are you dishonest?? I hope not. Is the company manufacturing snake oil or unsafe products? Unlikely, if they’ve been around for any length of time. The real reason so many people are uncomfortable with MLM is because their perception of selling takes them way out of their comfort zone. Rather than admitting this, there is a tendency to attack either the messenger (you and me) or the product.
What did you think being in business was all about? Right first time. It’s all about selling. Sure there are other aspects important to a business, but if it doesn’t sell, there is no business. Most people work in a branch or part of a business, very important maybe, but at the end of the day if the sales force can’t sell, then no one will be working there for very long. If I was an employee of a company today, I’d be more than willing to give up 10 to 20% of my salary providing the savings went directly to beefing up the sales division.
So let’s take a look at what selling really means. So many people I approach tell me they couldn’t possibly sell. Yet in the very next breath they tell me about a great movie or restaurant they’ve been to. More often than not, I take them at their word and check it out. In other words, they’ve just sold me. Wait a minute. I thought they just said they couldn’t sell. The truth is that we all sell. Mostly we sell ourselves, every minute of every day of our lives. We want people to like the things we like, to agree with the beliefs we have. We want to be part of a group. Selling is really just persuasion based on trust. If you have recommended a movie to me and I tell you I enjoyed it, you will be much more likely to go see a movie I recommend. The reason is you will be inclined to trust my suggestion because I trusted yours.
Similarly, in order for me to sell you my products or business opportunity, I have to be trustworthy in your eyes. Developing trust takes time, and patience. How we do this in network marketing is by providing information, explaining how it works, giving away free samples, and using the products ourselves. Mostly however, we build trust by listening to what other people’s issues and wants are. Only when we have understood them can we offer our products and services as a potential solution.
People aren’t bad at sales, but bad at listening.
4. How much should I invest?
Any business requires investment. You could invent a brand new product and spend millions on invention, patents, legal ownership structures, and manufacturing before a single item is brought to market. If you have millions to spare, I commend you. The rest of us however, have at least some cash constraints. Franchises are great. They are true businesses in a box, where everything down to the last detail has been worked out for you. The business model is tried and proven (although they were nearly banned). The downside is they are very expensive and simply beyond the reach of most people. Network marketing on the other hand is like a personal franchise, specifically designed and priced for the small start-up or home based business.
How much should you invest? Typically there are several entry levels to any MLM. But for arguments sake let’s assume two. The customer level, usually the least expensive, and the business level, the most expensive. If you are not completely sure what the products and the program are about, then why not start as a customer. Try the products and be sure you like them. On the other hand, if you are ready to use this company and products as a business vehicle, invest at the highest business level registration. The reason is simple, if you intent to build a business, then you must commit to it fully. Being in business for yourself is not something you ‘try’.
5. Isn’t it risky?
The last person to ask me this paused mid sentence to light a cigarette, inhaled deeply, pulling who knows what kinds of poisons into her lungs. “Compared to what” I replied. Show me something that isn’t risky? Everything we do in life has a certain amount of risk attached. How you perceive and manage that risk makes all the difference. I fly small airplanes. You’ll never convince some of my friends that flying is 30 times safer than driving. How do you feel about GM, Enron, and Nortel? These were all companies considered to be the paradigms of business success. If you had a job with one of these companies you were supposed to be set for life. The world has changed. Jobs and even careers are temporary. Being self employed is the new paradigm for job security.
6. What do you get out of it?
Most people who think of network marketing as some sort of scam, probably never get past thinking about the money. If they don’t make some cash in a very short time period, they assume they’ve been duped. Don’t get me wrong, money is important. However, the education you receive along with your personal growth may well prove far more valuable than the pay check. It has been said that network marketing is not so much a business as the world’s best personal development program. You will learn incredible things, not just about how to run a business, but about yourself and the people around you. You will make friends with people whose vision of what you could achieve exceeds anything you could imagine; people who have become successful, not just financially, but in all areas of their lives. You will meet people who have overcome incredible adversity to be where they are today, and who’s main ambition is to help you reach your goals.
So back to the original question is it a scam. I don’t think so, not if you’re careful and do your due diligence before jumping in. I’ve gotten so much out of it beyond a pay check. In my professional career, it is unlikely I would have built the size of organization I have today, or have the incredible support from the people who are above me. If I can pass on even a little of what has been given to me, it will have all been worth it.
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