The question to apply to the price of the product or service is, “Would I purchase at this price if there wasn’t a compensation plan attached to it?”
If your answer is “No,” then you are looking at a potential pyramid scheme where a product is just attached to the compensation plan to make the opportunity appear legitimate. In these cases you will always find that the compensation plan becomes the selling point and the product or service is rarely mentioned.
3. A Compensation Plan that is fair to both fulltime and part-time distributors alike with leadership bonuses for those who build large and productive teams.
We have already mentioned that a successful Network Marketing company will have a “distributor first” philosophy. In no other place should this be exhibited more than in the compensation plan. It takes only some simple arithmetic to see how many sales or distributors you need in your organization in order to be in profit.
Secrets of the “Heavy Hitters”
Now we come to the positive side of the equation. Ninety percent of conquering a problem is to identify the problem.
Even addicts have to first agree that they have a problem before they can be helped. So if we can quickly review the major reasons why people fail in network marketing, we can just avoid those pitfalls.
Let us take a look at these pointers:
- Be prepared to handle rejection. Who said that any kind of selling was easy? But it all comes down to attitude. If you can understand that a rejection of the opportunity that you are so excited about is not a rejection of you as a person, then you are on your way. “No” must be interpreted as “next”. This is easier said than done but it’s the price of success. The Internet and other new technologies now allow some rejection proof approaches, such as using lead capture pages and autoresponder messages. These methods serve to “pre-qualify” your prospects. There still must come a time when you will have to be in personal contact with your down line members however. Part of preparing your mind for these ‘negative’ people is to fill your mind with positive messages. There are many Network Marketing and “positive thinking” speakers that will help you keep your spirits up. You will be surprised to discover the boost that motivational tapes and books can give to your attitude in general. This is one of the benefits of being in this industry—it teaches you to have a brighter outlook on life.
- Be realistic in your expectations. To expect too much too soon will only set you up for a possible let down. Accept that this is a legitimate business that requires investment of time and effort and you must be prepared to sow the seeds for the harvest you expect to reap. Who builds a house without first considering the cost? When you are quoted the salaries of the big recruiters, be sure to ask how much time and money they spent to get to that level. This information will give you a clearer picture.
- Once you find a reputable company, be prepared to stay for the long haul. This goes without saying but if you expect to succeed you must stay the course. The most successful people in life have gone through very trying times but they stuck with it and left a legacy behind. It is often said that tough times don’t last but tough people do. The same is true for those seeking to build a solid recurring income. You should commit yourself to at least 3 years before making a decision either way. Jumping from one opportunity to the next only shows a lack of decision and stability.
- Do not make the business more complicated than it needs to be. Stick with what works. There is always the temptation to improve on the methods that experienced networkers have shown to work. Go with what works, not with what should work. If you find a system that has been working just plug into it and squeeze the last drop of success you can get from this. This means that you must show yourself teachable to your up line and be willing to teach your down line members the same system. Success normally comes from doing what works over and over again until it becomes second nature. Another note of caution is that you should not expect from your recruits what you are not doing yourself. There a many networkers who will give advice that they are not willing to follow. In other word they get their team members to “do the dirty work” for them. This practice takes away from the real meaning of duplication—I’m doing the same thing that I’m teaching you to do.
- Train and then let loose! The real power of Network Marketing is the power of leverage. Rather than using 100% of your own effort, you are using 1% of the effort of a hundred. If your down line members become too dependent upon you then they will be using 110% of your effort. This can easily lead to rapid burnout. So the key here is to train your frontline members, then train them to train their frontline members. As you gain leadership experience in the business then you can occasionally pick up the slack for a colleague. The important thing here is that your team members understand that effort is required on their part or they cannot expect your support.
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