As the name suggests, MLM (Multi-Level-Marketing), basically involves selling a company’s product directly to the customer by way of networking. Traditional retail selling is left to the brick and mortor businesses.
MLM is executed through a multi-layered distributor system where payments by the company are made to the distributors according to the distribution level they are in. Distributors are responsible for the business development and the revenue generation for the company.
The products sold are those that are used daily. Generally MLM is done by the companies that are offering products of regular use, such as soaps, detergents, car wash, containers, cosmetics and supplements. This is not an exhaustive list, it's merely a sample.
The convenience of shopping is another strong feature of MLM. Generally, MLM supports online shopping and at times even people network makes the shopping process easy. The distributor goes to the customer’s house, workplace or wherever it's convenient to both the seller and the buyer.
The key features of MLM include networking, flexible timing and convenience.
Networking is the backbone and the soul of MLM. Word of mouth and trust play major roles in the success of MLM. People known to the distributor trust him or her recommendations and try out the products. If the products do have the impact on the customers, then these customers most often recommend these same products to other people they know. And so the snowball rolls.
There's nothing quite like the flexibility of working for yourself. A MLM distributor can work for as long as he or she wishes to. Therefore, the time, money and efforts to be invested in MLM is totally on your choice. You may pursue it full-time or part-time as suits you.
Along with the convenience of flexible timings, MLM distributors generally work from home. They don’t have to show up in the office daily and they can work the hours that fit around other important things in their life.
Startup capital is usually very small as a MLM distributor. Therefore, you run little financial risk. But, do measure the risk-return ratio before venturing into any MLM business opportunity.
Is this a get rich quick business? NO. It takes a lot of time to grow in MLM. But, if you are determined to succeed there is nothing to stop you. Results will show.
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The ability to connect with people is essential to success in any business. Professional networking events present opportunities to interact with others on a personal level and to develop profitable relationships. These occasions are critical for anyone who wants to grow a business or promote a career.
Many people are simply not comfortable walking into a room full of strangers and striking up conversations. Here are five common stumbling blocks that you may face and tips to help you overcome them.
A Reluctance To Talk To Strangers - You were taught at an early age not to speak to people you don't know. It's not safe. In certain situations today this is still good advice. In business, however, talking to strangers is a way to generate interest and support for your products and services. If you only talk to the people you already know, you will miss out on opportunities to make new connections and establish valuable contacts.
To get past your discomfort in talking to strangers, set a goal for yourself before you attend any networking event. Decide how many new contacts you want to make or how many strangers you want to meet. In some cases, you may specifically target individuals whom you'd like to know.
Next come up with some icebreakers or conversation starters. Have questions prepared that you can ask anyone you meet at the event. You may want to inquire about other people's business, their connection to the sponsoring organization or their opinion of the venue.
Lack of a Formal Introduction - It's much easier to make a new contact when there is someone else to handle the introduction and pave the way. If you wait for another person to make the move you may not meet anyone. At networking events, the goal is to meet as many people as possible.
This is the time to take the bull by the horns, walk up to people you don't know, introduce yourself and start a conversation. You can do this if you have prepared your self-introduction in advance.
You will not introduce yourself the same way on every occasion. Perhaps it is your first time to attend an association meeting. In that case, you might want to say that as part of your introduction. Let people know who you are, why you are there and give them a reason to ask more abut you.
Fear of Being Seen as Pushy - You may think that you will turn people off if you are assertive and that if they want to talk to you, they will make the first move. If this is your line of thinking you will find yourself spending your time alone at the reception or meeting function and leaving without a single new connection. Being open, friendly and interested does not turn people off.
You will not come across as overly aggressive if you seek out the "approachable" people. These are the ones who are standing alone or who are speaking in groups of three or more. Two people talking to each other are not approachable because they may be having a private conversation and you would be interrupting.
Thinking That Other People May Not Like You - There is always the risk that the other person is not interested in you and doesn't want to meet or talk to you. It happens. If that is the case, don't take it personally. Nothing ventured is nothing gained. When you get a cold shoulder, smile, move on and say to yourself, "Next?"
Having Your Intentions Misunderstood - Approaching someone of the opposite sex to begin a conversation may seem more like flirting than networking. This is more of an issue for women than men. Women have an equal place in the work arena and need to make professional connections the same as men do. Women in business can no longer afford to hold back when there is opportunity at hand.
Neither men nor women will have their motives misinterpreted if they present themselves professionally in their attire and if they keep the conversation focused on business issues or topics that are not personal or private.
Whatever your stumbling blocks, face them before the next networking event and devise a personal plan for getting past them. Once you do, you will find yourself connecting with confidence and courtesy on every occasion and the results will be reflected in your bottom line.
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We all make use of traditional forms of getting new business in – advertising, direct mail, brochures etc but networking is one form of marketing which, has been under-utilised. Until now that is. Small business owners are finally beginning to under stand the power of networking and what it can do for their sales figures.
But what is networking?
In its most basic form, it’s word-of-mouth advertising but originated by you, not your customers. It involves taking every opportunity to raise awareness of your product or service amongst the people you meet. At a more sophisticated level, networking can be achieved by taking advantage of the formal networking groups or events that have been arranged purely with the idea of putting potential partners together.
But how can you, as a small business owner, become a more effective networker and take full advantage of the opportunities presented? We are going to give you some key tips and ideas on how to be a better networker.
What are the key advantages of networking?
Networking has some very good advantages over the traditional type of marketing:
• It’s free! Talking to someone costs nothing except your time
• It’s targeted marketing in that it’s likely the person you are talking to has a direct interest in your product or service. Consider newspaper advertising, which will mostly be read by people who have no interest in what you have to offer
• It’s face-to-face marketing unlike direct mail, adverts and telephone calls. You have the immediate opportunity to establish rapport and get an understanding of the person’s problems
• You have the chance to mix with business owners in other industries, which may open the door to new opportunities you had not previously considered
• It’s not only a way of creating business but also a great way to solve problems and seek advice. Why sweat over a solution when someone has probably already experienced and solved the same problem? Ask and find out who can help you
Where to Find a Network
Finding a place to network, where like minded business owners are present, is not that difficult. Whilst you should be networking all the time – taking the opportunity to promote yourself where ever you can – it’s more effective if you can meet people who are there to do the same thing; you can get onto the same wavelength that much quicker.
Here are some possible networking opportunities to think about:
• Your local Chamber of Commerce, BNI group or business club - as well as hosting their normal meetings (which are great networking opportunities anyway) they may hold regular networking sessions which are dedicated to putting business people together
• Government advice agencies – most countries have government bodies which have the remit of helping local small businesses, some of them may already hold network meetings where they bring together a batch of ‘new recruits’. Check out you country’s small business advice agency web sites to see what support they can offer
• Trade Associations – your industry may have an association which holds regular meetings. Although you are interacting with businesses in the same line you will still be able to find solutions to problems and pick up new ideas. Who knows, if you establish good rapport with another business, they may be happy to refer surplus work to you or tap into a unique specialisation you may have?
• Seminars – keep a look out for seminars being run for small business owners. As well as being informative, they are a great networking opportunity, especially over coffee and lunch when you have the chance to start a conversation going along the lines of, “How do you think you’re going to apply that point we learnt this morning in your line of business?”
In just this one question you will have found out what business they are in and one of the problems they are currently facing. If you’re lucky, you may be able to offer help as well – one extra sale!
• Anywhere and everywhere – remember to network all the time! Never miss an opportunity to tell people what you do. You may only get a successful hit in one out of a hundred contacts, but one sale may be enough to make it all worthwhile!
Where and when are meetings likely to be held?
Formal networking events can be held over breakfast, lunch and dinner. Breakfast sessions are popular because it allows business owners to start the day on a positive note, leaving the remainder of the day free for ‘business as usual’. But how good are you at holding a sensible conversation at 7 o’clock in the morning? If you don’t look or sound your best in the early morning, then you had better find an alternative!
The best networking events are where you are free to ‘work the room’ and not be tied to a table with food being served.
What to Prepare
As with any marketing promotion, networking should be thoroughly prepared for. Badly presented sales pitches lead to lost sales; the same goes for networking. So what should you do before attending a networking session?
Step 1: Know your products and services inside out. If you are only just starting out, make sure you are fully briefed on all the inn’s and out’s of your product.
Step 2: Write and rehearse an opening statement to the question “What do you do?” This may sound an easy question but try thinking an answer on the spot and at the same time making it some good! Not so easy. Write a clear and concise statement, which encapsulates everything about your business. Remember, this is your chance to impress! Having decided on your opening line, rehearse, rehearse and rehearse. It has to be word perfect and confident sounding.
Step 3: Make sure you have enough business cards. You don’t want to scribble your number on the back of a napkin! Not very professional.
Step 4: Double check the venue and time. You don’t want to turn up late and miss any opportunities or appear to be lacking in time management skills.
Step 5: Dress to impress. Make sure you are neat and tidy – everything a successful small business owner should be.
Step 6: Leave your house/office in plenty of time to make sure you don’t arrive totally stressed out
You’re Off!
You have arrived at the venue and if this is your first time, what are you likely to do? Find the nearest corner and pray that someone doesn’t approach you! Networking, especially the first time, can be nerve-wracking. It does take a degree of confidence but over time this gets better.
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