Build with Purpose and Design

This is one of those Network Marketing catch phrases that can leave people wondering what was actually said. Then we heard right after that, “Treat this like a business, and you’ll get make money. Treat this like a hobby, and you’ll spend money”. Most people that get involved with Network Marketing have probably never owned a business, are working for someone else and looking to either supplement their income or get out of their job altogether. Consequently, while they may have a hobby or two, they may not know the first thing about starting or running a business.

As a contractor, I was already running a business when I first looked at Network Marketing. Understandably the statement “Build with Purpose and Design” made perfect sense to me as the first thing I had to do in my contracting business was write down what it was I wanted to do and become licensed in that area. I then made a rough business plan outlining what I would need for equipment, personnel, bookkeeping and I outlined a cost/profit structure.

I followed pretty much the same outline when I began my Network Marketing business. I looked at how much time and money I could spend on my new business. Then I wrote down what I wanted to earn and I looked into the compensation plan to see what it would take to earn that. For example (I’m going to be leaving out abbreviations and go with straight numbers here.) let’s say you want to make about $500 a month and you earn 5% of your volume without factoring in bonuses. That means you will need to have a volume of at least 10,000 a month. For the sake of ease we’ll say each unit equals 100 so that would mean you would need 100 people on auto-ship in your downline to earn $500 a month.

Your purpose is to now build a downline of 100 people and earn $500 a month. Sound daunting? Not so! Let’s break it down and design a plan. Divide 100 by 5 to get 20 and we’ll call that Level 2. Here it looks like you have to find 20 people to join you and help them find 5 people to join them. Still looks challenging to me. So let’s divide 20 by 5 to get 4 and we’ll call that level 1. Here it looks a little more promising; you need to find 4 who will find 5 to join them and those 20 will each find 5 to join them, and voila! You have your 100 people. To hedge the outcome a little in your favor, let’s say in your level 1 you place 5 people instead of 4. That would give you 125 people or 25% more than you need to make your goal of $500 a month and you’ve only built down 2 levels. Without thinking too far ahead, just imagine what’s going to happen as your organization grows to 3, 4, 5 levels and more!

This is not unfeasible; it’s being done every day by people who have never run a business before in their lives. If you can write down a grocery list, if you can write down a to do list, you can write out your purpose and then craft a design to support that purpose. You definitely don’t want to stress out over time and money so plan your expenditures and time to support your design. The key is to follow it consistently. If you have trouble with time or money, adjust your design – but don’t forget your purpose! Once you have gotten the hang of this, it will become second nature, and you’ll be able to teach it to your down line which will increase your business bottom line exponentially.

Summertime!

The smell of charcoal in the evening, the Big Dipper at night, crickets and the cool of the evening make the heat of the day a distant memory. However it's a tough time for Network Marketers, or so it seems. I've had three meetings in the last two weeks canceled because of last minute changes in vacation plans or visitors arriving unexpectedly from out of town. While these could be considered setbacks, it has allowed me more time with my family and I actually have been able to be more relaxed when meeting people who I feel may be interested in my business. It's easy to see that a more informal approach works best this time of year, and while not pushing it I've been able to find people ready to join my business or agree to set a date later in the summer to meet.

Because of the relaxed nature of this season, I find it's possible to let time kind of slip by. In fact it's been so laid back lately that for the first time in a while I've had to really focus on the follow up. While I know that's "where the fortune is" sometimes it feels too good to kick back and put it off along with mowing the lawn. Folks, the grass keeps growing, and people's attention will wander. I caught myself and tightened up my follow up techniques. Not only do I continue to lock in appointments to follow up, I've taken to including reminders on my phone! At the beach,lake or anywhere there's cell coverage the alarm rings out, my notes are in the phone and I can make that call. This is the kind of activity that is filling my funnel for the fall. Like our gardens are growing towards producing fruits and vegetables; my activities this month are aimed towards developing relationships. This Autumn I'll have new partners to work with and it looks like a bumper crop of prospects looking to get started in a new venture.

My friends, this is the season to enjoy the weather, meet new people and fill your funnel. While you're at it, pick up Jim Rohn's "Building Your Network Marketing Business". In it he makes reference to the seasons in growing your network marketing business. It's a CD that should be in every marketer's collection.

Comparing Compensation Plans

Comparing comp plans is to me like comparing apples and oranges. Both are fine fruits, but they won’t do anything for you if you don’t eat them. Just as a comp plan won’t do anything for you if you don’t work it.

Consequently I'm not going to spend any time comparing them. There are a half a dozen good ones in the market right now with some being far better than others. Each is a variation on a basic plan with their proponents screaming the benefits.

So it comes down to the product again. If you believe in the product and are willing to work, I think you can make any compensation plan work for you.

I do suggest strongly though, that you not just familiarize yourself with your company's plan, but get to know it inside and out. Your people, your prospects will rely upon you to help them navigate the maze. This will keep their enthusiasm from waning. I remember in the beginning that I could not figure out why one month I received a check while the next month I got nothing! With no one to help me, I figured it out by myself. If I had had someone to help me from the beginning, I would have made more money.

So look at the product, research the company and then take the compensation plan apart. Ask the pointed questions like: Do I get a commission for signing someone up? What is the requirement to receive commissions? Are there bonuses for building and working depth? Is there a bonus pool I can qualify for? These are just a few that you should ask your sponsor and the answers you should be able to tell your prospects.

For a real indepth look at this, check out a book by Daren C. Falter, "How to Select a Network Marketing Company". If you are in this business, this should be in your library.

Choosing the Right Network Marketing Company

Starting a Network Marketing business is just like starting any business. You better have a few things down pat before you open the door. For instance, why are you starting and what are your reasons for maintaining a successful Network Marketing business? I am going to assume that you have given those questions a fair amount of thought and are ready to get to work. So how do you pick which product to represent? Remember, this is a Marketing Business and you will be bringing a product to the marketplace.

There are a several very important guidelines that I will touch upon here. The first is to find a product that you would purchase and use. This is a relationship business and there is no room for pretense. Then research that product using these three criteria. First, is it a quality product? The second criterion is to make sure you can easily explain its benefits. Not features, leave the brochures for that. You need to be able to show how it will benefit your prospects in simple, easy to understand and easy to duplicate language. The third, and I think the most important one is: Is it unique? I decided a long time ago that I was not going sell another brand of v *****ns. I wanted to offer something nobody else had, in or out of a store, and one that offered fantastic, unique benefits.

This shouldn’t take you long. I believe you’ll know when you have found the right fit, the right product for you.

The next steps will be to take a look at the company that produces your product; the leadership and compensation plan. This is a little more complicated and I will address these issues one at a time in the next post.

The Why of working from home-network marketing

Why are you looking to make money from home, why are you attracted to Network Marketing.

You can’t do anything until you know why it is you are doing it. For some it’s a plan B, you know in case I get laid off or something. For others maybe their plan A got blown away, and now plan B is plan A. Or maybe like me you desire financial independence, and a real chance to take charge of your income.

I will probably talk a lot about lists, and there are lots of kinds of lists. Things to Do Today list, grocery/hardware store lists, plenty of lists. The Lists I’m talking about today are the Why List and the Dream List. These Lists keep the accountability factor in play. When you write The List, you have recorded your thoughts on paper for all (including yourself) to see. Make a list of why you are doing this, along with a list of your dreams. When you can see the Why on paper and you can see the Dream that will drive you, you are already creating your momentum. When you believe in these, there is nothing that can keep you from creating that Dream.

I know why I do what I do, and I have a list of what I expect to have to do to accomplish my Dream. I have turned those into goals. Goals are just another form of The List, only with definite steps and a time frame within which those steps are taken.

I’ll be sure to talk more about goals soon; however in the meantime make sure you write down what it is that will drive you to your success while working from home in network marketing.

Network Marketing, How did I get started?

As a successful contractor/business owner, I had local work with new and repeat customers. Then four events came together and rattled my comfortable box.

Event 1, I suffered a sports related injury requiring surgery to my shoulder. Consequently I had to hire someone to do my job while I supervised. This was financially tough and frustrating to say the least.

Event 2, we had to evacuate for two weeks due to a massive fire. This was followed by record breaking rain and snow storms. Over a 100” in a matter of weeks. While I planned for normal weather difficulties, any variance to the extreme could prove disastrous for my business.

Event 3, while looking for jobs we could do during the bad weather that would also accommodate my shoulder injury, I received a notice from the Social Security office which told me how much money I could expect to receive each month when I chose to retire. As a professional musician for twenty plus years, I hadn’t thought to contribute to the fund so needless to say it wasn’t very much. The band around my chest tightened a little more.

Event 4, We made a decision to relocate to be closer to my wife’s work. I figured I would pick up new customers, and build my business back up to where it was without too much difficulty. Leaving my business behind, I found myself the new guy on the block. Adding insult to injury, I ran right smack into this current recession that was pulling the bottom out of the construction industry. I was hanging high, dry, and underfunded.

During the time I was recovering from surgery, and watching the rain pour down; I had a little time to explore alternative sources of income. I had only a few criteria. It had to be one that didn’t involve employees, was weather proof and recession proof. This new source of income had to be able to grow big enough to support us when we wanted to retire, and it had to involve helping people. It seemed that only one seemed to fit that bill, Network Marketing.

Now, because it is a business I can build from our home, it’s weather proof. Because I am working with a network of ambitious volunteers, it doesn’t involve employees. And did you know that well run Network Marketing companies actually thrive in times of recession?

That’s how I got started, and I’m doing pretty well.

When are you going to pick up the hammer and get going?