Avoiding mistakes that do not need to be able to bring you to success faster. The wise man says, If you do not know where were heading to, you will take a little longer to reach the venue. It happens in business as well as DS / MLM. Success and failure of a person in his journey in the MLM business is strongly influenced by the behavior and his vision forward. Jeffrey Babener, leading MLM consultants in the U.S. designate 10 major mistakes that MLM distributors often led to failure. The following article is a free adaptation of writings in the magazine Network Marketing Babener Life Styles 2000/Januari Edition December 2001, entitled "Networking Dos and Donts: Ten Common Mistakes and How to Avoid Them".
This article is very interesting because it can be used as food for thought by both distributors and MLM companies. If the distributor can synergize with the company, chances are the major mistakes can be avoided. Thus the MLM participants likely to reach their destination, that is success more quickly.Following the discussion:
Exaggerate the earning potential to make people expect too much. True, many millionaires were born by the MLM business. But in fact, less than 10 percent of full-time distributors who undergo this business. The majority of people running the MLM as a sideline business. Thus, the expectation of income from MLM business should be made as realistic as possible at such rates not much different with labor income. The assumption, this income is used in addition to the permanent labor income. Facts on the ground, many distributors who originally hoped to cash a large excess, while disappointed, and then ran away from the MLM. Sponsorships are recruited with promises of income that turgid often lose credibility in a short time. So give hope, be positive, and at the same time realistic.
This article is very interesting because it can be used as food for thought by both distributors and MLM companies. If the distributor can synergize with the company, chances are the major mistakes can be avoided. Thus the MLM participants likely to reach their destination, that is success more quickly.Following the discussion:
1. Do not overdo it with the potential income
Exaggerate the earning potential to make people expect too much. True, many millionaires were born by the MLM business. But in fact, less than 10 percent of full-time distributors who undergo this business. The majority of people running the MLM as a sideline business. Thus, the expectation of income from MLM business should be made as realistic as possible at such rates not much different with labor income. The assumption, this income is used in addition to the permanent labor income. Facts on the ground, many distributors who originally hoped to cash a large excess, while disappointed, and then ran away from the MLM. Sponsorships are recruited with promises of income that turgid often lose credibility in a short time. So give hope, be positive, and at the same time realistic.
2. Do not just rely on the system
Activity tends to recruit ditumpukan on compensation systems (marketing plan) is considered the most superior and ensure success. But the historical facts plainly stated that no one had a successful MLM companies with solely rely on the system of compensation. Of course having a compensation system that provides incentives to attract it. But the compensation system is often too tempting a patch for a product that is less good and poor management. Such systems usually do not preserve the continuity of business enterprise or its distributors. Thus, the main requirement remains a quality product, strong management, and shared vision that could be nice. Thus, MLM participants should pay more attention to these elements rather than concentrating on the magic system.
3. Do not just join the trend
People love smitten with certain products are more trendy out. But stories like that only lasted a short time. Sometimes an MLM company can be successful by the momentum of the right products and support a solid product line. However true this is rare. MLM history is filled with products that refers to a fad, but not all successful course. So, look for a solid product and it makes sense, especially once the existing product market and the consumer is really needed.
4. Do not think short-term
Just as businesses and other serious value, MLM takes time to grow and develop. If you are looking for short term success, it means you're planting the seeds of failure. Do not expect fast results at least in your first six months in business. Those who succeed in MLM generally has quite worked hard to build a network and have a long-term vision. Economist Milton Friedman said, "The future is longer than the present"
5. Money machine? Not!
Often we hear business plan that is recognized as a money machine. Prospects indoctrinated, "You do not need to sell anything. Simply create a list of prospects and money will come in person to your account!" MLM is not a money machine and not a recruiting machine. MLM is a serious business. Successful distributor must master the product, consumers know very well, knew the company visions, and ready to work hard to achieve goals. Thus, the concentration of the strong business foundation and forget the money machine, and your business is likely to be sustainable.
6. High profit margins
Distributors are often seduced by the compensation system that exaggerates the potential income, which it is intended to lift the products offered. Companies with products of good quality fine set higher prices, and thus can pay higher sales commissions. Experience record, large MLM companies can survive by focusing on good quality products, reliable quality, consumption and consumer needs, such as nutritional products, personal care and household care. If the MLM products are easy to find the comparison in retail, it is rather difficult for the company to gain enough profit margin to pay high commissions.
A number of service or service seem to have a future in this industry. But marketing services such as telecoms and the internet seems to only generate a small profit margin. Both are good and needed. But distributors are engaged in a product like this should find a larger number of consumers to compete with the results obtained by the high profit-margin products.
7. Do not ignore the company's reputation
The ratio of success in MLM not much different with other small-scale businesses. Inevitably, there is a significant failure rate. If you are looking for greater opportunities for success, choose a MLM with a track record (reputation) is tested. Even better if the company has been operating for at least a year and is evidenced by a quality management company. But, really the chances of success can be achieved by those who joined earlier? Well, sometimes it does have a point. But the "ground floor opportunity" or an early opportunity of no value if the business foundation fragile. If you're the type of people who have guts and are ready to take risks trying both financially and psychologically, if for example a new MLM that you select is closed, at least do study carefully the people behind the company (founders and top management). The review also notes their success in business before and talk to other distributors who also entered earlier.
8. Avoid loading inventory
Companies that want a front-loaded in bulk from distributors obviously requires a large cash investment as well. Avoid! With the ease of communication and the distribution date, the distributor should not be too large investment required. Practice loading inventory is intended merely to raise a large fund to pay high commissions to the heavy hitters. The heavy hitters are the focus on recruiting new members. Such programs are usually disguised pyramid schemes. When hiring slowed down, the business opportunity was fading. So, join with a company that sets the investment habits of moderate and rational order. The latter is more dimensional than the long term that impose large front load.
9. Do not be a flea
He says that if one is good, then two and so on would be better, right? Wrong! Whatever myths you hear, very, very few distributors who can be successful by holding at the same time some MLM programs. MLM history records, rows of success stories over filled our distributors and loyal customers who commit to a program than the fleas. Although it is not easy to focus on a particular product or program. But the majority of successful distributors pursue this business full time, be careful in choosing the right company, and persevere in that company.
10. Do not stand idly
Not enough to just choose the right company, calling a friend to join, and look forward to a big income. Distributors who are successful are those who consistently recruit, sell, and then reinvest the results for the development of its business. People often discuss financial freedom in this business. But financial freedom is not going to happen if you just sit on my hands. Just like any other serious business, success in MLM needed investment, hard work and consistency. So, do the habits that support your business development from now on. Do not forget, avoid all the mistakes that you recognize the shape
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