Have you decided to take hold of your career and future by starting a multi-level marketing business? Multi-level marketing, or MLM, is a strategic marketing plan in which the sales team is paid not only for sales transactions they personally make, but also for sales of their team, or downline. This cascading structure of distributors creates a hierarchy of levels, creating additional streams of compensation and potentially making it a very profitable business model.
When people decide to start an MLM business, there are some common questions asked:
- How do I know what to expect in an MLM?
- What if I’m not an expert on the product?
- How do I relate to my customers?
- Will I really make any money at this?
These are valid concerns and should be addressed while you are making plans to get started. Success in multi-level marketing is not guaranteed, but with some hard work, determination, an openness to learn and some good old-fashioned luck, good things can happen.
Even with all the good things falling into place, it is important to protect against the bad things that can occur. There are three pitfalls in MLM to avoid in order to have the best odds of succeeding, and navigating around them will give you a better chance of finding success in this exciting business.
Avoid Unrealistic Expectations
It is a common occurrence; when anyone finds something that revolutionizes their way of thinking, they tend to expect too much right out of the gate. After hearing others explain how MLMs can bring financial independence and change a person’s life, it is easy to expect this all at once.
After hearing the pitch, you may feel like you are going to earn a million dollars in the first month, even though you don’t know exactly how your product works, how to effectively promote it, and you haven’t even begun to develop a customer base. If you realize that it is going to take some time, you won’t get discouraged when you don’t see results in the first month or two.
The thing to remember is that this is a business, not a “get rich quick” scheme. Successful businesses usually take time to grow and develop as their owners figure everything out and develop a network of contacts. By giving your MLM time to grow and mature, you will not be disappointed by a slow start, increasing the chances you will stick with it and prosper.
Don’t be ignorant
Being called ignorant is not necessarily a cruel insult; ignorance is simply a lack of education. This is a pitfall that a new MLM business owner can overcome. Learning about the processes involved with your MLM company is the first step to finding success. Most companies like this have already established a formula for starting and running your business, so learning what they have to say is a great way to start. Most companies provide videos, books and other forms of education to help you succeed.
The second step in your education is to learn your product. If you are knowledgeable about the service or product you supply, you can focus on how the company’s offering is better than the competition. You may also want to learn how to present your business in such a way that others want to buy what you have to offer, or they decide to join your team. Education will make that possible.
Education is usually not difficult to get. In addition to printed materials, many MLMs offer conventions, training courses and professional websites with extensive training information. Remember one thing; your upline will almost assuredly want to help you because your success is their success. This usually makes the people above you the ultimate source of education.
Not Connecting with Your Clients
This pitfall is about priorities. While everyone wants to make the most money they can, satisfying customers is the long-term secret to success. A business man or woman who cannot relate to customers has a difficult time keeping the doors open. Selling services or products is important, but it only works if the customers feel appreciated and valued.
A person who asks about how your MLM works, or wants to know about your products is not just a customer for this moment. The truth of the matter is that if you take care of this person’s questions and needs now, they may be a customer for as long as you own the business. Loyal business relationships are not built on products, they are built on customer service.
Showing your customers that you care for them is easy. It is about looking people in the eye, telling them the truth and doing what you say. If you have chosen wisely, promoting a product should not be difficult. When you are honest with your customer and provide a top-level product or service, you have the best chance for success.
Avoiding the Pitfalls
Starting a business can be difficult; in fact, it is much like laying the foundation of a building. If you take the time to create a solid foundation, it is possible to create an amazing structure. If the foundation is bad, however, the entire building will suffer. So it is with a successful MLM business; for that reason, you want to start strong and get a firm spot on a road that you expect to lead to a new, better life.
By paying attention to these three pitfalls in MLM to avoid, you will improve your chances of having a solid business. Setting achievable goals, learning about your company, educating yourself about the product or services you provide and making sure to understand and relate to your customers will make everything run more smoothly.
No one wants a business that fails; making sure to follow the trails blazed by the successful multi-level marketing people who came before you will increase your chances of having a company that makes it. A successful business that is built on correct expectations, sound education and dedicated customer support makes it possible to give yourself the best chance of success in a difficult business environment.