Network marketing has come a very long way in the past 10 years. The 20th Century model was a work-intensive effort. It required you to pay a sum of $100+ each month for products that you could sell if you wanted or use for yourself and your family. It required the attendance of meetings in homes and hotels or even restaurants. It required direct mail campaigns to invite potential members to ‘meetings’ or ’seminars’ where you would present your business and your products and then your business opportunity to those who attended. Thereafter, it required you to purchase a lead list of potential network marketers or those who had been members of other MLM companies before.
This was a pattern and system that required 4-6 months of incredibly hard work and time (described above) as well as up to $3-5,000 in advertising, leads, conference room rental fees and packages and products.
Those who dedicated themselves to round-the-clock cold-calling, lead acquisition, flyers, direct marketing invitations to conferences and meetings always built a foundation of downlines that allowed them to earn a lot of money within a year that would sometimes continue beyond two to three years and bring a lot of money into their bank accounts.
From the point of view of the leaders of downlines built in this way in the company however, it was always hard to keep their downline working. You see most people who joined network marketing companies were not as industrious and motivated as their leaders. No one told the soldiers in the downline how hard they would have to work to be successful. In addition, everyone who joined the network marketing organization was always started off with a goal sheet and asked to make a list of 100 people they know. Most people would list their family members, friends, co-workers and even acquaintances - most who had almost no interest in either the company business opportunity or their flagship product or line of products. As a result, those who contacted their list and ran the company sales material by them became quite frustrated by the lack of interest.
“Why”, they thought to themselves ,”should I invest in more products, show them or give them to my ‘list’ of friends who then would not join?” Increasingly, it made no sense and the pressure was on by the spouses of these people to show some green - not month after month of red ink on their balance sheets.
In fact, a study was done to learn about network marketing companies and those who join them. Turns out that 98% of those who join network marketing companies are only able to recruit 2.4 other people to their downlines. Only 2% were able to recruit others who would work the business and who were motivated to teach others and build their own downlines. That’s an eye-opener. The most lucrative compensation plans had fast payoffs and were thereafter designed to allow payoffs if a member could recruit just 2 people. Those two would theoretically able to recruit their own two and so on down to 6 levels. Bonuses were thrown in to sweeten the pot for the winners and to act as a carrot to those struggling to build.
The 20th Century model of network marketing still exists today in most MLM companies. There are only a very few that have moved into the 21st Century and that have begun to use the power of the internet and communication technologies to permit the new generation of network marketers to automate many of the processes described above.
To learn more about these companies and what they do differently, visit Second Incomes USA
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