Avoid the Top 10 Network Marketing Mistakes

By: D.J. Harr

Just completed this for the December Noni Pearls Magazine, thought I would share it with all of you. Hope you enjoy it.

Avoid the most common mistakes

Here are the 10 most common mistakes that networkers make. These mistakes are often ones of attitude, missed judgment calls, or misinformation.

Common mistake in network marketing -#1

Inflated Earnings Expectations

There are many millionaires in the Network Marketing Industry. There are also many millionaires in the NBA as well, but how many schoolyard ballplayers make it to the NBA? VERY FEW! This is the case in Network Marketing and those who become millionaires as well. While a large number home based business owners earn a great part-time income. The average individual spends more time dreaming about what they are going to do, or spends their time in fruitless activity. Realistic expectations for the average part-timer should be an extra $400-$500 per month. Don't sell anyone else the millionaire line. It may happen, but it simply is not the average.

Common mistake in network marketing -#2

Go For the Product, Not the Plan

I hear it nearly every day. Just last night I received an unsolicited call. The conversation went something like this: ...'Hello, I understand you want to start a home based business and make boat loads of money'......I stopped her at this point and asked her if she has used that introduction very long. She said, 'oh yes, I have been doing this for years now!' So I asked her how effective she was in calling phone numbers with that opener. She said, 'I make lots and lots of money'. Our conversation went on for about 10 minutes with her telling me how much money she was making and how easy it was to make 'boat loads' of money. Ten minutes into our conversation, she had yet to reveal what it was she was representing--what was it she was selling to make BOAT LOADS of money with? This should be one of the first things you speak about.

It was at this point in time I informed her that I currently had a home based business and was not looking to enter into another business. 'Could we please speak business to business here as I am not a prospect'. She stammered a little bit but politely agreed. As it turns out, she simply copies pages out of the phone book and calls each name one at a time. She has been doing this for a year with very little positive results, and is struggling tremendously to earn more than $200 per month. You guessed it, I asked her if she would be interested in learning more about my company and the team benefits. In the end, I mailed her a copy of the current magazine and some additional . She was excited to hear that we work with our team members one on one coaching and mentoring. She stated that the person who signed her up has never spoken or responded to communication in more than 3 years. This is just sad and pathetic.

Too often, the temptation is to speak with our recruits or prospects about the 'money' which can be earned. As a result, you may sign a few new people up who are looking only for the money...while this may work, you are missing one of the biggest, best and most effective sales tools.......YOUR PERSONAL TESTIMONIAL.

How effective is a man, who has never cleaned, cooked, or used a vacuum cleaner in his life going to be at selling items to make these chores easier? It is much more simple to speak about the 'business end' when your audience believes you because you believe in the products.

Of course, a fair compensation plan, which provides good incentives, is important. But in the long run it is the company's quality products which people bond themselves to. The management and the vision make all the difference in the world.

Common mistake in network marketing -#3

Don’t Think Short Term

The Network marketing business is like any other worthwhile endeavor. Realistically, a distributor should not expect to see the real fruits of their labor until at least six months into their business. Those who have been truly successful have been at it a long time. Don't expect it overnight and never quit working towards the goal.

Common mistake in network marketing -#4

It’s Not Easy Money

We have heard it a million times, we may have even believed it a time or two. This is one of the things I hate most about the industry. People seem to think that the pitch should be 'easy money', you don't have to work, you don't have to sell, you just make a list, sign a few people up and they do all the work for you! Sound familiar? Still waiting for the pigs to fly into your mailbox delivering great big checks?

Experienced Network Markers will tell you that it is not an easy money game. It is not merely a recruiting game. Distributors who are successful know their product, know their customers, know the company's vision, and are prepared to do that which is necessary. HARD WORK. Look at the name Network Marketing.

Common mistake in network marketing -#5

“Free-Bee" Product – Forget About It

You get what you give and you take what you get! It’s not about offering something for nothing, it’s about adding value to what you have! I cannot stress this enough.

If you want to sit on a roller coaster of ups and downs. Downs being the money you spend for a freebee or a gimme product, the Ups being the instant traffic or interest you have while someone walks up to you.... with their hand out for your freebee. You will generate a great deal of Interest only in the trinket, but not what it is you have to say! Once they have what they want, they will never look back. You want activity, likewise, you also want FRUITFUL activity. If you must offer something for free, associate a value with it that benefits the individual. We offer a $25 Gift Certificate for all new Case Autoship Qualified Distributors. They in turn may use this with the company on a future purchase. Why do we do this? Because the chances of them trying another product from the company is high--we know the quality is second to none and feel that the additional exposure will show them the true value of other products.

Common mistake in network marketing -#6

Don’t Ignore the Company Track Record

A distributor who is looking to increase their odds of becoming successful is looking for a company with a good, strong, firm, and consistent track record. A track record demonstrates quality of management and products. This is very important for those who are genuinely 'business builders'.

Common mistake in network marketing -#7

Run --Don't walk!

You should avoid a company who requires you to carry large investments of inventory. The monthly minimum should be what you can realistically use in a single month. Autoship programs for both customers and distributors, represents a far more fair and long-term approach than large front load requirements.

Common mistake in network marketing -#8

Look for Products with Profit Margins

There are many Network companies in the world today. A great deal of them offer very low if any profit margin return. As a business builder, you know that Network marketing isn't for everyone. However if you have a good product, the product can be sold to everyone, you have a good thing going. Far too often distributors concentrate on the compensation plan and earnings hype then spending time looking at the profitability of the products or services offered by a company. A company with an exclusive product, these companies, can justify a higher profit, which means the ability to pay commissions in the long term from the sale of the products.

Historically, this is why the largest and most successful Network Marketing companies have had, as their mainstay, consumable products that are proprietary. These products are unique to the company, allowing for sufficient profit to pay commissions. If the products are available in every shopping club, grocery store or nutrition store, chances are, that is where the public will make their purchase.

Common mistake in network marketing -#9

Don't be a junkie or a ping-pong

Very few distributors in the industry have developed the ability to work multiple programs effectively. These types of distributors are few and far between. As the average distributor is part-time to begin with, you should carefully pick a company and stick with it. History favors the long-term committed distributor rather than the next-opportunity-junkie who hops from opportunity to opportunity. Focus and energy is hard to maintain with one company and its products, let alone several. Splitting your time and energy with several companies will most likely end with limited or paled results. Focus in on yourself, your goals, and your desires in one direction.

Common mistake in network marketing -#10

Turn off the TELEVISION

Activity is the name of the game in network marketing. You must do more than complete the distributor application; call your friends and sit back waiting for the money to be rolling into your mailbox. Turn your television off and get proactive. Do you know how many hours you could find in a day if you simply were willing to turn the television off?

The most successful people in network marketing are the ones who are constantly recruiting, selling and calling upon the same prospective customers and recruits multiple times. Those who sit back and watch the television in all their spare time will have unfulfilled expectations.

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This article is in the December issue in the Building your Business section. Can’t find the answer to what you are looking for? Join in the Community Forum, someone will come along and answer your questions for you.


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