Had you heard about Network Marketing Business? It is a powerful business model to join if you are starting to build a business. There is so much you can benefit from the business model.
First of all, you don’t need to create your own product. You can sell the product from the network marketing company and in most cases, if you select the right product, the fame of the product is already there.
All you need to do is to share the product with more people.
Not on that, but most network marketing company provides top training for new business partners and also, mentors\’ guidance.
And the best part is… anyone can do it.
All you need is the determination and the perseverance to continue building the business.
What is Network Marketing?
Network marketing is a business model that requires you to network in order to make sales. The key to the business is to network. The more you expand your network, the more your earnings increase.
Amway, for example, is a global network marketing company that offers business opportunities for individuals to sign up as their business partners. Network marketing had lowered the barrier for individuals to work with world-top businesses. People who signed up for Amway’s network marketing program can then sell all of Amway’s products to their friends and family and receive a commission.
The commission rate includes product sales commission and also tier commission for your recruits\’ sales.
It’s similar to affiliate marketing where you get commissions for selling their product. But with network marketing, you don’t drive traffic to the business, but you recruit new business partners as well.
That’s why it’s most common for people to sell to their friends and colleagues first — those people are often the lowest-hanging fruit.
But there is a limit to the number of people around you that will buy from you. Hence, you will need to get more leads or people to know and buy from you.
In fact, other than those who are in the business for years, and those who are relatively new to the network marketing business and get huge success, they do create an online store, build sales funnels, and craft a fully-fledged business.
But before we dive into how you can build a successful network marketing or MLM business… let’s deal with the elephant in the room.
Are Network Marketing or MLMs a Scam?
There’s a common misconception that Multi-Level Marketing companies are just a pyramid scheme. There are many similarities between MLM and a pyramid scheme.
There’s usually an element of MLMs where, if you sign other people up as sellers under your group, you get some sort of benefit or credit from their sales.
This is naturally how we do business and train our mentees. But what happens is this business model is used by scammers to make money. We called this a pyramid scheme.
A pyramid scheme is illegal and typically focuses on recruitment and high initial investment to join the business. The business target is to recruit to join their program rather than sell products.
MLMs and network marketing companies, on the other hand, are legitimate entities that encourage individuals to sell their products for a commission.
And in most cases, network marketers often sell to strangers rather than their friends and family.
Identifying whether the business is a pyramid scheme or a legit MLM business is very easy. Just look out for these few things.
- Low sign-up fee – MLM companies don’t make money from the sign-up fee. Instead, they make money from product sales. But they will ask for a small sign-up fee to ensure your commitment and avoid people from simply signing up new business partners.
- Legit product – The product shall be genuine and proven to work.
- Commission structure – Tier Commissions structure and paid based on personal sales and group sales.
3 Things To Look For in a Network Marketing Business
When selecting your MLM company, be very clear about their terms as some are very strict about selling their products online. The selling mode and the pricing are all restricted.
Here are 3 things you should look for when selecting a network marketing company to work with.
1. Able To Sell Online
Since we are planning to leverage the online sales funnel to build our network marketing business. This is very important.
If an MLM business opportunity prohibits you from selling the products online, then your lead generation and closing will be limited mostly to your friends and family only.
While it is still possible to grow a local MLM, the scale is very limited. And it’s much harder than it needs to be. You are competing with other’s marketers in your same city that is selling the same product and using similar strategies.
So before signing up, talk to the introducer and check the restrictions. Are you allowed to sell products online? Are you allowed to run advertisements and drive traffic in other ways?
2. Able To have Own Store & Checkout Process
If the first question is yes, then the next question will be can you control the sales process?
Normally, the website for the MLM company is not designed to have optimized conversion. It’s a conventional website that shows the company background, product catalogues, and so on.
Typically, it’s a process where it takes 5-6 steps for someone to complete the purchase and check out.
This is why you want to build our own landing page and online store. By this, you can control the experience of your visitors and the sales process.
This means you can have different landing pages and sales funnels created for recruitment and product sales. And is able to use your way to guide and close the customers rather than just throwing network marketing parties.
3. High Commission
This is very important as you are here to make money. Not only that, but you also need to cover your ad cost to reach more people online.
This is why you will need to make sure to get a higher commission as possible to cover your cost.
How To Build a Network Marketing Business With Sales Funnel
You can use an online sales funnel to build a successful network marketing business.
Here are the steps that you can follow to do it.
1. Choose Your Product
The first step is to choose what products you’re going to sell and what network marketing company you’re going to work with.
Do research about the company and product. I recommend choosing the product that you are interested in or used before. As it will help to build your passion for promoting the product.
Then, look at the commission structure, and the restrictions if you want to use the internet to promote it.
2. Determine Your Target Market
Next, will be to determine who your target market is.
For this, you can create a dream customer avatar. When creating this avatar, it is important that you put in all the details of the dream customer. Take some time, and create the avatar including their name.
Who are they? What do they want? What do they fear? Any problems they are facing? What are they excited about? How can you help them?
Don’t try to skip this step as many people end up failing their business because they don’t know who is their target customers. And what language their target customers are speaking.
You need to identify who you are selling to in order to get success in network marketing.
The better that you understand them, the easier it’ll be to sell to them.
Once you understand who you’re selling to, it’s time to craft your sales funnel.
3. Create Your Sales Funnel
In order to sell your network marketing products consistently, you’re going to build a sales funnel…
If you are listening to the word sales funnel for the first time, don’t worry. A sales funnel is the combination of a series of pages that are crafted carefully to guide the visitor to take the exact action you want them to take.
For network marketing business, you typically build 2 types of the funnel. The first one to sell MLM products. And, the second one is to collect leads and share business opportunities.
Here are some funnels that you may use for network marketing.
The Tripwire funnel :
A tripwire funnel is also called a 2-step sales funnel. In this sales funnel, there are only 3-4 pages.
The first page, it’s the landing page you promote the main product you want to sell. And the second step would be a upsell/downsell page depending on their activity on the first page.
If they say yes on the first page, then you will proceed to upsell them with the One Time Offer (OTO). And if they say no, you will send them to the downsell page offering a small price point product.
And at the end of the funnel, will be the thank you page and offer wall. Showing the order summary and other available products for them to purchase further.
The webinar funnel :
A webinar funnel is like hosting an MLM party, but you are doing it virtually online. The funnel comes in 4 steps from registration to the sales page.
The entry of the funnel will be the registration page where someone who is interested in the business opportunity or the product can sign up for the webinar to know more about it.
Then there will also be the reminder that goes on until the webinar starts. On the webinar day, you can then show them the business opportunity or the product you want to sell. And then, direct them to the order page or opt-in page to complete the signup or purchase.
Lead funnel :
A lead funnel is also called a squeeze page funnel. The is only 1 aim here, to generate more leads.
Lead funnel is a 2-page funnel with the first page being a squeeze page with the target to submit the form. This is to collect their details so that you can follow up with them with emails or calls to sign them up for the business.
And the second page will be a short thank you page, typically with a video to thank them for signing up and what to expect in their email.
Sales funnels are a strategic and proven method for growing most online businesses. And since you are working for a network marketing business, you can leverage the power of the sales funnels to grow your business as well.
So here are a few ideas that you can implement…
Generate Leads and Grow Your List
One of the things emphasized by network marketing is to have a list. A list of people that you can tap into and sign up for the business opportunity. This is how network marketing business grows. And generally, the larger the list, the more successful the business will grow. This is because there are more people with that you can build relationships, and send offers. The list is full of people that you can contact and sell to over and over again without having to pay.
When selling online, a sales funnel converts much better compared to an eCommerce store or your network marketing company website. You choose the product that you want to focus on and the sales process to close the customer.
Hosting a webinar or online event is a great way to generate leads and sell products. Especially if you are selling high-ticket products, a webinar will convert better than a landing page.
Other than the sales funnel, the sales copy is equally important in persuading the sales. You need to tell them the stories so that you understand the problem that they are having. You have gone through the problem, and for the solution to it. Of course, the solution will be the business opportunity or the products that you are selling.
4. Sending Traffic To Your Sales Funnel
Most people who start a network marketing business sell to their friends and family. And this is common for all beginners. This is a great start where they will support. And this gives them a great start.
However, there are limited potential leads from this group of people. They can’t be supporting you forever and the number of people is limited.
They might post on social media a few times and try to sell more… but still, their organic reach is limited.
Social media are advertisement platforms as well. They make their revenue from the ads sales. So, unless you already have fame and a huge following, merely posting on social media will not bring in huge traffic.
What you can do instead, is join a group where all your dream customers congregate and share your business opportunities and products in the group. To do this, don’t be too aggressive and sell from day 1. You should first build your reputation in the group, and provide values so people can trust you.
And then, only you start selling.
If you plan to start running advertisements, make sure that you are making a profit or at least breakeven in your first offer. Else, there is no point to run ads and all your profits go to social media only.
If you’re not, then relook into your sales funnel, and landing page or even consider signing up for an MLM program that gives better commission.
Start Your Network Marketing Business Today!
One of the best parts about having a network marketing business is that the entry threshold is very low. Those with huge investment is typically pyramid scheme scam.
You can start with a little bit of investment and start selling today.
So, just follow the steps above and start picking your first successful network marketing business. If you are not sure, always come back and read again. Ensure you understand and follow each step to build a successful network marketing business.