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How to CHOOSE A MLM BUSINESS
Network Marketing: How To Choose A MLM BusinessThe range of products and the training offered by a Network Marketing company are often underestimated. Still, they are key to an increasing residual revenue. Lets revue the criteria which should be considered in evaluating a business opportunity in Network Marketing.
(PRWEB) October 18, 2003
Network Marketing is a lawful, original and very dynamic form of distribution. The products are not sold in traditional way at the store but by men and women who operate their business usually from home. They present quality products of an established company assuring the support to its entrepreneurs and their clients.
As Independent Entrepreneur, you develop your own sales network, so you are paid on the whole business volume of your organization. This is another particularity of Network Marketing, commissions are divided between the intervening parties instead of the traditional merchant who keeps the profit margin for himself. By this mechanism, you benefit from a residual revenue, month after month, subsequent to an initial effort, which is a lot different in a conventional store where one must constantly look for new customers to maintain the sales volume.
For the manufacturer, the advantages are also important. With the same gross profit margin as they would have allowed to a conventional store, they get, in Network Marketing, a personalized presentation of their products to potential clients. Depending on the nature of the product, Network Marketing is sometimes the only efficient marketing option.
In its concept, Network Marketing brings solidarity, mutual help and exceptional support from its team members. Moreover, it is the most upright system known to remunerate talent and effort. Everyone has equal chances to develop an important organization, if desired.
Other names are used for the same commercial activity, such as VRC (vente par réseau commercial) in Europe and MLM (Multi Level Marketing) in the USA. However, in the past, Network Marketing has been wrongly associated with pyramid schemes that are illegal in several countries. As in any commercial activity, discernment is important. It would not come to your mind to declare that all restaurants are insalubrious if some of them unfortunately make the headlines. There are those who imagine strategies to make it rich quickly and others, true business builders, who ground their action over several years of honest work.
The interest in this form of marketing goes back to the 50Â’s, the success of Avon and Amway are some examples. Today, several companies explore this avenue. We can observe GE, AT&T, Kodak, Proctor & Gamble who get involved by alliances with existing networks or by acquisitions. Furthermore, some American Universities are now offering Network Marketing courses.
In 1999, a survey conducted by Direct Selling Association in the USA revealed that Network Marketing generated worldwide sales of 84,5 billion $US and 34,6 million registered salespeople. In the USA alone, between 1995 and 1999, sales increased by 36 %, from 17,9 billion to 24,5 billion $US. The number of home based workers increased by 85 % in the USA between 1990 and 1997 and this trend will increase since 96 % of adults aged 25 to 44 dream of having their own business.
Those interested in networking are people from all socioeconomic classes. Their motivations are multiple and vary from one another. However, some reasons arise more often, such as :
· the need for an additional revenue to actual wages
· escape from current job uncertainty
· the need to build up a worthy activity for your retirement
· the need for autonomy and to be your own boss
· wanting to manage one's own time in home comfort
· simply, start a new career.
Developing a new business project always requires some thinking. Offers are numerous, particularly on internet. LetÂ’s review the most important criteria which should be considered in evaluating a business opportunity in Network Marketing :
1) The business capitalization : the marketing of products according to the Multi Level Marketing (MLM) method requires a big investment by the owners. It is important for you to verify the financial stability of the company you are interested in. Inquire about the business antecedents of its directors. Talk to entrepreneurs in place and ask to meet with the directors so they can expose their views on the industry, concentrate your questions on the strengths and weaknesses of the company. Are they paying commissions on fixed dates and without delay ? What are the expansion projects of the company ? Go for a visit of their installation, their customers service and shipping departments.
2) The training : your success as entrepreneur lies in acquiring a know-how. It is the companyÂ’s responsibility to offer you the tools which will help you to develop. Ask to see the training program. Ask questions about those giving this training and evaluate their competence. Read the available literature about the company and its products.
3) The choice of a sponsor : are you sufficiently at ease with your sponsor to invite him at your house for diner ? to talk to him on a daily basis ? Equally, do you have affinities with other members of this team ? Is your sponsor offering you any marketing projects to which you can adhere ?
4) The growth of the industry : choose a company established in a growing industry, the growth rate must be above 10 % annually for an medium growth and at least 20 % for a superior growth. Refer to available statistics on the subject. How is the company you are interested in positioned in this industry ? Choose preferably a company in the introduction phase which offers a high potential or a strongly growing company having but a few active entrepreneurs in your territory.
5) The remuneration plan : carefully study the rules to qualify for commissions. Are these rules clearly presented to you ? Is your sponsor helping you to establish your business structure in terms of your personal objectives? Talk to those who succeeded in that company and ask for advise on this subject. How many efforts do they devote to their business ? As a networker, can you get a good compensation for your efforts ? Evaluate the time you will need to recover the money you invested to join this organization, it should be no more than a few weeks.
6) The range of products offered : the products must be sufficiently fascinating to you so that you become a consumer yourself. The products must be unique, i.e. available exclusively by the network you belong to. The products must be consumable, therefore excluding durable products. Ask for the loyalty rate to the products, it must be superior to 75 %. In other words, for 100 clients, on average how many will continue to consume the products month after month ? The Â’repeat businessÂ’ is an essential key in residual commissions. Evaluate the quality of the products, ask how they are made and what is their particularity. What benefits will the consumers reap from them ? Are the products offering an excellent Quality/Price ratio ? Does the company own any patents on these products ? This assures you that these products will remain unique. If it is a discovery, is it well documented, is this discovery well recognized and respected by the people in this industry ? Are the researchers who made this discovery respected in their field of research ? The larger the recognition in the field, the more you will have an important discovery in hands. Ask the people around you for their opinion on how they perceive the products. You will certainly join the company offering the best products because this thorough conviction will represent your everyday source of motivation as entrepreneur.
The range of products and the training offered by a Network Marketing company are often underestimated. Still, they are key to an increasing residual revenue. Give these elements a special attention in your evaluation.
You have all the information in hands, you have made up your mind, all that is left for you to do is the most important, work on YOURSELF. Here are the golden rules to success :
a) Develop a project that is unique, a way of doing things that is yours, a personal objective to attain. Put your train of thought in focus so that the objective to attain is clearly impregnated in your mind. Do not hesitate to have grand ideas and develop for yourself the tools at the level of your ambitions. Your profound desire to be successful forever replaces the previous doubts and wavering. Elaborate a single project that will occupy all your attention. Put it in writing and conjugate all verbs in the present tense.
b) Do not enter in competition with anyone, you have a unique product, a fair price, a unique objective, so take what belongs to you and leave their share to others. Opportunities are numerous and the sun shines for all. What you wish for yourself, wish it for each member of your team and help them to attain their objectives. It is the beauty of the network.
c) Express your gratitude to the people who help you, be thankful to them regularly. They will be inclined to be more supporting to you.
d) Go into action, your objective to achieve must be expressed into concrete daily actions. Visualize your daily progress and savor every little step to the realization of your objective. Give to each client more use value than the money value you get from them. Your will to act according to your plan is your source of motivation. Accomplish all you have to do, do not postpone till tomorrow what must be done today. 100 % of your efforts go to the success of your project.
e) Give yourself moments of reflection to readjust your aim and to reinforce your objectives. Develop action plans that are more and more efficient. Your occupation must be the actual moment. You cannot change what was done yesterday and tomorrow is yet to come. Your objective must be ever present in your mind.
f) Be always enthusiastic and positive, gather people who share your views. Keep in the company of winners and stay away from pessimists.
g) Remain creative to imagine new methods of action to attain your objectives. Accomplish the tasks of the day efficiently and without stress. You will give an impression of personal well-being which others cannot fail to notice. Just like a magnet, you will attract quality people who resemble you.
Source: Berteau, Paul E. from http://www.prweb.com/releases/2003/10/prweb85116.htm
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(PRWEB) October 18, 2003
Network Marketing is a lawful, original and very dynamic form of distribution. The products are not sold in traditional way at the store but by men and women who operate their business usually from home. They present quality products of an established company assuring the support to its entrepreneurs and their clients.
As Independent Entrepreneur, you develop your own sales network, so you are paid on the whole business volume of your organization. This is another particularity of Network Marketing, commissions are divided between the intervening parties instead of the traditional merchant who keeps the profit margin for himself. By this mechanism, you benefit from a residual revenue, month after month, subsequent to an initial effort, which is a lot different in a conventional store where one must constantly look for new customers to maintain the sales volume.
For the manufacturer, the advantages are also important. With the same gross profit margin as they would have allowed to a conventional store, they get, in Network Marketing, a personalized presentation of their products to potential clients. Depending on the nature of the product, Network Marketing is sometimes the only efficient marketing option.
In its concept, Network Marketing brings solidarity, mutual help and exceptional support from its team members. Moreover, it is the most upright system known to remunerate talent and effort. Everyone has equal chances to develop an important organization, if desired.
Other names are used for the same commercial activity, such as VRC (vente par réseau commercial) in Europe and MLM (Multi Level Marketing) in the USA. However, in the past, Network Marketing has been wrongly associated with pyramid schemes that are illegal in several countries. As in any commercial activity, discernment is important. It would not come to your mind to declare that all restaurants are insalubrious if some of them unfortunately make the headlines. There are those who imagine strategies to make it rich quickly and others, true business builders, who ground their action over several years of honest work.
The interest in this form of marketing goes back to the 50Â’s, the success of Avon and Amway are some examples. Today, several companies explore this avenue. We can observe GE, AT&T, Kodak, Proctor & Gamble who get involved by alliances with existing networks or by acquisitions. Furthermore, some American Universities are now offering Network Marketing courses.
In 1999, a survey conducted by Direct Selling Association in the USA revealed that Network Marketing generated worldwide sales of 84,5 billion $US and 34,6 million registered salespeople. In the USA alone, between 1995 and 1999, sales increased by 36 %, from 17,9 billion to 24,5 billion $US. The number of home based workers increased by 85 % in the USA between 1990 and 1997 and this trend will increase since 96 % of adults aged 25 to 44 dream of having their own business.
Those interested in networking are people from all socioeconomic classes. Their motivations are multiple and vary from one another. However, some reasons arise more often, such as :
· the need for an additional revenue to actual wages
· escape from current job uncertainty
· the need to build up a worthy activity for your retirement
· the need for autonomy and to be your own boss
· wanting to manage one's own time in home comfort
· simply, start a new career.
Developing a new business project always requires some thinking. Offers are numerous, particularly on internet. LetÂ’s review the most important criteria which should be considered in evaluating a business opportunity in Network Marketing :
1) The business capitalization : the marketing of products according to the Multi Level Marketing (MLM) method requires a big investment by the owners. It is important for you to verify the financial stability of the company you are interested in. Inquire about the business antecedents of its directors. Talk to entrepreneurs in place and ask to meet with the directors so they can expose their views on the industry, concentrate your questions on the strengths and weaknesses of the company. Are they paying commissions on fixed dates and without delay ? What are the expansion projects of the company ? Go for a visit of their installation, their customers service and shipping departments.
2) The training : your success as entrepreneur lies in acquiring a know-how. It is the companyÂ’s responsibility to offer you the tools which will help you to develop. Ask to see the training program. Ask questions about those giving this training and evaluate their competence. Read the available literature about the company and its products.
3) The choice of a sponsor : are you sufficiently at ease with your sponsor to invite him at your house for diner ? to talk to him on a daily basis ? Equally, do you have affinities with other members of this team ? Is your sponsor offering you any marketing projects to which you can adhere ?
4) The growth of the industry : choose a company established in a growing industry, the growth rate must be above 10 % annually for an medium growth and at least 20 % for a superior growth. Refer to available statistics on the subject. How is the company you are interested in positioned in this industry ? Choose preferably a company in the introduction phase which offers a high potential or a strongly growing company having but a few active entrepreneurs in your territory.
5) The remuneration plan : carefully study the rules to qualify for commissions. Are these rules clearly presented to you ? Is your sponsor helping you to establish your business structure in terms of your personal objectives? Talk to those who succeeded in that company and ask for advise on this subject. How many efforts do they devote to their business ? As a networker, can you get a good compensation for your efforts ? Evaluate the time you will need to recover the money you invested to join this organization, it should be no more than a few weeks.
6) The range of products offered : the products must be sufficiently fascinating to you so that you become a consumer yourself. The products must be unique, i.e. available exclusively by the network you belong to. The products must be consumable, therefore excluding durable products. Ask for the loyalty rate to the products, it must be superior to 75 %. In other words, for 100 clients, on average how many will continue to consume the products month after month ? The Â’repeat businessÂ’ is an essential key in residual commissions. Evaluate the quality of the products, ask how they are made and what is their particularity. What benefits will the consumers reap from them ? Are the products offering an excellent Quality/Price ratio ? Does the company own any patents on these products ? This assures you that these products will remain unique. If it is a discovery, is it well documented, is this discovery well recognized and respected by the people in this industry ? Are the researchers who made this discovery respected in their field of research ? The larger the recognition in the field, the more you will have an important discovery in hands. Ask the people around you for their opinion on how they perceive the products. You will certainly join the company offering the best products because this thorough conviction will represent your everyday source of motivation as entrepreneur.
The range of products and the training offered by a Network Marketing company are often underestimated. Still, they are key to an increasing residual revenue. Give these elements a special attention in your evaluation.
You have all the information in hands, you have made up your mind, all that is left for you to do is the most important, work on YOURSELF. Here are the golden rules to success :
a) Develop a project that is unique, a way of doing things that is yours, a personal objective to attain. Put your train of thought in focus so that the objective to attain is clearly impregnated in your mind. Do not hesitate to have grand ideas and develop for yourself the tools at the level of your ambitions. Your profound desire to be successful forever replaces the previous doubts and wavering. Elaborate a single project that will occupy all your attention. Put it in writing and conjugate all verbs in the present tense.
b) Do not enter in competition with anyone, you have a unique product, a fair price, a unique objective, so take what belongs to you and leave their share to others. Opportunities are numerous and the sun shines for all. What you wish for yourself, wish it for each member of your team and help them to attain their objectives. It is the beauty of the network.
c) Express your gratitude to the people who help you, be thankful to them regularly. They will be inclined to be more supporting to you.
d) Go into action, your objective to achieve must be expressed into concrete daily actions. Visualize your daily progress and savor every little step to the realization of your objective. Give to each client more use value than the money value you get from them. Your will to act according to your plan is your source of motivation. Accomplish all you have to do, do not postpone till tomorrow what must be done today. 100 % of your efforts go to the success of your project.
e) Give yourself moments of reflection to readjust your aim and to reinforce your objectives. Develop action plans that are more and more efficient. Your occupation must be the actual moment. You cannot change what was done yesterday and tomorrow is yet to come. Your objective must be ever present in your mind.
f) Be always enthusiastic and positive, gather people who share your views. Keep in the company of winners and stay away from pessimists.
g) Remain creative to imagine new methods of action to attain your objectives. Accomplish the tasks of the day efficiently and without stress. You will give an impression of personal well-being which others cannot fail to notice. Just like a magnet, you will attract quality people who resemble you.
Source: Berteau, Paul E. from http://www.prweb.com/releases/2003/10/prweb85116.htm
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NU SKIN
Nu Skin Enterprises, Inc. demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives.
Nu Skin’s scientific leadership in both skin care and nutrition has established Nu Skin as a premier anti-aging company, evidenced in its unique ageLOC™ products that address the sources of aging. The company’s anti-aging products feature the new ageLOC portfolio of skin care products including ageLOC Future Serum and the ageLOC Edition Galvanic Spa® System II, as well as ageLOC Tru Face® Essence Ultra and LifePak® Nano.
A global direct selling company, Nu Skin operates in more than 50 markets worldwide and has more than 900,000 independent distributors. Nu Skin is traded on the New York Stock Exchange under the symbol “NUS.”
Nu Skin’s scientific leadership in both skin care and nutrition has established Nu Skin as a premier anti-aging company, evidenced in its unique ageLOC™ products that address the sources of aging. The company’s anti-aging products feature the new ageLOC portfolio of skin care products including ageLOC Future Serum and the ageLOC Edition Galvanic Spa® System II, as well as ageLOC Tru Face® Essence Ultra and LifePak® Nano.
A global direct selling company, Nu Skin operates in more than 50 markets worldwide and has more than 900,000 independent distributors. Nu Skin is traded on the New York Stock Exchange under the symbol “NUS.”
GET REAL
Before signing up for personal selling- here's what you should like for MLM and direct-selling companies.
Making shopping hassle - free is the direct-selling business's specialty. As far as customers are concerned , the idea that they can get things at a friendlier price minus the stress of braving traffic and falling in line at payment counters has always been fascinating. But for successful direct selling companies, the picture is bigger. The concept of "shopping at the comfort of your own home" is obviously working, but it is the idea of "changing lives" that made them stick. Selling the concept: Value proposition There is more to the direct selling business than just products. Ultimately, the message these companies want to send is that they can make lives easier. Avon Philippines, a pioneer in that direct-selling industry, has been in operation for 31 years now. It has successfully tweaked the shopping mall culture and turned it into something that's not only stress-free but also something more personal. Bob Briddon, president and general manager of Avon Philippines, puts it simply: " We bring the store to you and we offer great value." Alliance in Motion Global Inc., or AIM Global is a company that uses multi-level marketing and has made significant success since it started in March 2006. Also called MLM, it differs from purely direct-selling in the sense that MLM offers financial benefits to sales people who successfully recruit more persons into the MLM company's sales force. Dr. Ed Cabantog, the president of AIM global, agrees that direct-selling has made shopping a more personal experience. In case of AIM Global, which mainly sells nutritional and herbal food supplements, it's the story behind every product that spells the difference. "It's always better to hear about a product from a friend. Especially with the kind of products we sell, there's always a unique story attached to them that's worth telling." he says. The direct seller: Make his life better "If you have a dream, your welcome here," says Cabantog about MLM and his firm. Direct-selling works on the concept that it does not only make shopping easier for buyers, it can also make the lives of direct sellers better.The good thing about it is that it does not require a college degree or years of professional experience - and the direct seller can work at his own pace, part-time or full-time. Cabantog and Briddon agree that direct-selling allows anyone to start a business of their own with nothing but guts and a good social network. Says Briddon: " Our best product is the earning opportunity." The main selling point of the direct-selling industrty is that it has figured a way to supplement the income of its "partners" like no other business could. For Avon, retail representatives get a 25 percent commission for the products that they sell. AIM Global dealers get anywhere from 20 to 30 percent. A bonus amount is also given to a dealer who gets to refer people to the company. Tested financial model Briddon and Cabantog agree that the direct seller is everything, or at least the most crucial aspect, to the industry. Sustaining a business like direct selling is not limited to improving products. What is even more critical is how to make sure both the direct seller and the company get what they want. "It's a good thing that Avon has been around for a long time, so we have perfected the formula. You need a good financial model or structure that will give the dealers what they need and still protect the company," says Briddon. Similarly, AIM Global has devised a strategic markerting plan that provides for qualified distributors to earn bonuses while maintaining the company's profitability. |