Now you know what Network Marketing (MLM) is you might want to find out more about how it actually work from the perspective of a customer, distributor and company.

The Customer

The customers will usually hear about a product by a recommendation from a distributor.   This could be a personal recommendation, through party plan or via a catalogue.  The customer places an order with the distributor and the distributor then supplies the product to the customer either by ordering it from the company, or by supplying it from existing stock they may have.

The Distributor

Distributors usually only join a Network Marketing company through an existing distributor by being recruited, or 'sponsored' by that distributor.  More on this later.

The distributor will be incentivised to sell the products / services the Network Marketing company offers for two main reasons: enthusiasm about the product(s) and remuneration from the company.  They will learn what they need about the products from the company and/or their 'sponsor' who introduced them to the business.  They then learn to sell / recommend the products through 1-2-1 contact, party plan, catalogues or sometimes online.

The Company

The company will usually have a phone and/or Internet ordering system so that distributors can place orders that they have received from 1 or more customers.  The company will automatically calculate commissions that are payable to the distributor and the distributor can usually track their whole business online from recent personal sales, commission due, team sales and more.

Once a distributor has placed an order, the company will then either supply the products/services direct to the customer, or supply it to the distributor, who then delivers the goods to the customer (in the case of physical products).  A good company will have a whole supply chain, logistical, administration and support system set up to aid the distributors in their sales.

Do I need to sell to succeed in MLM?

For most MLM companies, one way or another, you need to be able to sell in order to succeed, no matter what anyone tells you. Even if it's only yourself as a potential sponsor. Or your business opportunity. Or the need to set goals and action plans for success. You even need to sell yourself, from time to time, on the vision you originally had when you got involved in MLM.

But selling doesn't have to be pushy or manipulative. In fact, the best the sellers are usually teachers and leaders, not hype merchants. Selling is WHAT you have to do to succeed. Pushy and manipulative are WHY and HOW you do it. There are better reasons (why) and methods (how) that produce faster, bigger results.

In addition, many MLM companies like Kleeneze are now combining the power of catalogue direct selling, to make the "selling" of products much easier for the distributors.

What are the best kinds of products for MLM?

If there’s one kind of product that's best suited to NM, its products that are genuinely consumable. That is, people use them up, and then come back for more, regularly. That means you acquire a customer once, and then just keep on selling to them over and over and over again. A large product range is also an advantage.

Why is network marketing and direct sales such a growth industry?

There are a number of reasons why MLM and direct selling are one of the biggest growth industries in the world today, to understand these we need to look at some of the basic economic and social situations affecting people at the moment. These are the primary trends that are pushing the growth of our industry.

Lifestyle Revolution

Compared to the race for wealth and consumable items in the 80's and 90's, at the moment the real issue for many people now is improving their lifestyle, which doesn't necessarily mean more money to spend, but is more related towards time freedom and happiness. Having a job simply isn't the answer anymore. People don't want to work 40 or 50 hours a week, just to pay the bills. More and more people are looking for alternatives direct sales can provide exactly that.

Self-Employment Revolution

The idea of a job for life does not really exist any more - and there has been a shift from the "job" mentality to an "income" mentality. People are more concerned now about doing what they have to do to create the income they need - which means a lot more people are now looking at the self-employment / small business options.

Direct sales has an advantage of most traditional small business options however, as the start up costs are much, much lower, and often no specific skills are required to get started.

Direct Shopping Revolution

There is now also a move away from the traditional distribution channel of the high street shops, to buying via the internet or from catalogues etc. Home shopping is now the fastest growing trend in retailing worldwide.

With people working longer hours, long queues, and congested road traffic etc. more and more people want the shop to come to them. With improved distribution throughout the world over the last couple of decades, the direct sales industry can provide convenience, free delivery and personal service.

Can anyone really succeed in MLM?

Yes, they can, providing they meet the conditions on which that level of success depends. This is what separates the winners from the losers in any area of life, not just MLM.

The difference in MLM is that those conditions are achievable by anyone willing to create a clear vision for themselves, then invest the time, effort and discipline needed to realise that vision.

It requires some basic knowledge, attitudes and skills. It does NOT require any particular gifts or talents, although these can help speed up the rate of success.

The secret of success in MLM is leverage — the extent to which you can duplicate your achievements through sponsoring, coaching and supporting others to do what you do.

Duplication

We have seen from the section above that one of the secrets to success in network marketing is the ability to leverage your time and energy by building a team.

So what is the key to successful team building? Well there are many things that will help you in your journey, but one thing that is essential is DUPLICATION.

This means that although you may be fantastic at sponsoring or a complete whiz at presenting the business to people (or whatever it is that you are particularly good at) this on its own will only get you so far. To develop true leverage in a network, you need to be able to duplicate.

Duplicate your ENTHUSIASM
Duplicate your SKILLS
Duplicate your SUCCESS

One of the best ways to achieve this is to have a system. Think of the system as an instruction manual for the business.

A good example of a successful system is McDonalds. In doesn’t matter what in the world you set up a McDonalds franchise, you will still be able to create a restaurant with a certain set of standards and operating procedures, that if followed will create success for the owner of that franchise. This is why people will pay large amounts of money for these franchises, because as long as they follow the SYSTEM, success is all but guaranteed.

In network marketing, everyone who joins your team will bring with them different skills and ideas. Without a system, the burden lies very heavily with the sponsor to show each new team member exactly what to do, how to do it as so on. If you get a sponsor that for some reason is unable or unwilling to pass this knowledge on, then the new people joining this leg are at an immediate disadvantage.

With a successful system, everyone who joins the business at ANY level has the same chance of success. An 'upline' will also find it much easier to work deeper into his/her organisation because at every level the same system is in place.

>>> Find out more about the benefits of Network Marketing (MLM)