Before I begin, I want to clarify what type of business I am referring to here. This is not about MLM or pyramid based schemes. This is about legitimate network marketing companies that feature front end weighted compensation plans vs. back end weighted compensation plans. The main difference being:
Back End Weighted Compensation (BAD) – whereby disproportionate percentage of earnings are generous to upline distributors with large downlines and meager to front line distributors who actually sell the products.
Front End Weighted Compensation (GOOD) – where compensation to front line distributors is generous and does not allow a huge and disproportionate amount to be made by the upline on those direct sales. In these systems deception and greed are minimal.
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Starting a network marketing business can seem very much like a maze – lots of directions to choose from, but only one path that will lead you to success. So you have a network marketing home business….now what? That’s the view many people have after they have come down from the high of starting with a network marketing company, after the hype has died down and reality sets in.
Here is the problem as I see it today:
Many network marketers are trying to use a consumer based model to grow their business, a very thin ‘buy now’ membrane, and pitching their product and business to people right off the bat. If you have any social media profiles like Facebook, LinkedIn or Twitter, you have no doubt received the pitch that goes something like this: “Thanks for adding me, now go and check out my business”. And most people react with ‘uh, no thanks’.
In general, people do not like to be sold – they prefer to sell themselves on the idea. Online, this is even more pronounced.
In today’s hyper-speed internet economy, you have to build the relationships by paying it forward before you get to the transaction of what it is you are marketing.
Today’s online environment has too many ads, too many concentrations of offers. You have to know the people you are looking for and be selective. Don’t sell your business to the public but rather pick who you will work with and mentor so that they have the same success you do.
Your first line distributors are your top notch people, the generals of your army. While trying to sign up your friends and family is a good place to get your message out, odds are they aren’t going to be your team of ‘Navy Seals’ that will accomplish your goal.
So, before you do anything else and start blasting your link out to the world, develop strategic goals of what you want to accomplish. Your most effective growth will come from finding and developing leaders followed by leveraging their efforts as a team.
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