Building a network marketing business is an art, not a science. Yet your chances of success improve with attention to the trends that cause interest and the factors that motivate people to join and stay. Why Millions of People Are Getting Involved Although network marketing isn’t for everybody, millions of people from all walks of life consider it to be the right opportunity at the right time.
The fact is becoming an independent distributor can fill important needs and fit within the time and money limitations many people face.
Virtually No Investment Required Most companies require only the purchase of a modestly priced sales kit ($25 to $100) to get started. The Chance to Own a Business Because network marketing can easily be done part-time, and worked around a full-time job, it gives people who work for someone else the chance to own their own businesses and jump into the world of entrepreneurship. In this world, they are rewarded for risk-taking, and have control over their working environments. NULL
Extra Income and Possible Tax Benefits Network marketing allows people to earn additional income in their spare time, or even create a full-time, high-paying career. Plus, they may enjoy some very real tax benefits through operating their own home businesses. An Ideal Home-Based Business The vast majority of network marketers run their businesses from their homes, making it perfect for those who want to earn extra income, yet still spend time with their families. Social Interactions In an age in which we find ourselves “cocooning” into our own homes, one of the greatest attractions network marketers point to is the plus of social networking. Because this is a people business, distributors make many new friends and acquaintances. Self-Esteem Every network marketing company gives its distributors recognition for their achievements. Thanks to this recognition, many distributors have found new self-esteem. In Tune with the Times With the nation’s leaders imploring citizens to become financially empowered and to take responsibility for their own financial destiny, and with the majority of new jobs coming from small business enterprises, networkers are becoming increasingly aware that they are in tune with the times. Why They Do It … And so, if you are trying to capitalize on the excitement and interest in this new class of entrepreneurs to recruit and build your network marketing business, you might want to know what motivates networkers to join with you, stay with you or, unfortunately, to leave you behind.
Although the earnings opportunity is always a given for networkers, you might be surprised to find out that non-monetary factors are, perhaps, the most critical to building your business.
According to the Direct Selling Association, the five top reasons why people join network marketing companies are:
- I like and believe in the product. (90 percent)
- I like being my own boss. (73 percent)
- I like working at home. (64 percent)
- The harder I work, the more I make. (54 percent)
- I enjoy selling. (49 percent)
Another study by the DSA looked at the top reasons that motivate network marketers to stay with their companies. Again, the most important reasons are relationship based:
- Favorable response to product.
- Favorable response to the company’s management leaders.
- Favorable response to the top distributor leaders in the sales force.
- Identification with the company vision or purpose.
- Satisfaction with the amount of earnings.
And finally, a study by a major direct selling company attempted to discover why networkers leave their company, and it found the following top factors that drove them away, all relationship weaknesses:
- Poor communication with the sales force.
- Inferior support for the distributor force.
- Inadequate leadership in the company.
- Lack of training.
It’s the Relationship, Stupid! As you build your network marketing business, you will soon find that it is an art and not a science. And yet, if you pay attention to the trends that cause individuals to be interested in a network marketing opportunity, and if you pay attention to the factors that motivate networkers to join you and stay with you, your chances of success will be vastly improved. So, good luck!
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On any given day you can catch Jeffrey Babener, Babener & Associates, lecturing on Network Marketing at the University of Texas or the University of Illinois, addressing thousands of distributors in Los Angeles, Bangkok, Tokyo and Russia, or writing a new book on Network Marketing, an article for Entrepreneur Magazine or a chapter for a University textbook.
Over two decades he has served as marketing and legal advisor to some of the world's largest direct selling companies. An active spokesperson for the industry, he has assisted in new legislation and served on the Lawyer's Council and Government Relations Committee of the Direct Selling Association (DSA) as well as serving as General Counsel for the Multilevel Marketing International Association.
He is an MLM attorney supplier member of the DSA and has served as legal counsel and MLM consultant on MLM law issues for many DSA companies. He has chaired more than 50 national conferences on the subject of “Starting and Running the Successful MLM Company”. He is editor of one of the most informative and popular websites on Network Marketing, Direct Selling and MLM, www.mlmlegal.com.
- When Networkers Compare Products and Opportunities by Jeffrey Babener - May 1, 2010
- Planning a Great Meeting by Jeffrey Babener - April 1, 2010
- You Can Do It by Jeffrey Babener - March 1, 2010
