Friday, October 31, 2008

MLM Success - How Many Network Marketers Does It Take To Screw In a Light Bulb? by Terry Montague

Assuming that you are in this industry in order to secure your financial future, then before choosing a Network Marketing business opportunity you should look closely at their Compensation Plan. This is, of course, what will ultimately determine how much your paycheck will be. Considering the amount of time and effort you put into building your organization, why not make sure that each addition to your downline constitutes a significant raise for you?

Are you looking at your Compensation Plan through rose-colored glasses?

Caution needs to be taken when trying to evaluate a Compensation Plan merely by looking at the way it is presented to potential distributors. Often a company may explain it in their literature and on their website in a way that is simply trying to paint a pretty picture for your financial success.

For instance, some companies would have you assume that everyone in your organization will be ordering their required auto ship and, in the case of the binary plan, that both legs are equally balanced. Yeah, right…in a perfect world! They don't illustrate the reality and consequences of breakage and spillover. These are funds that are retained by the company and never make their way into the pockets of the distributors who put their blood, sweat and tears into generating them.

As a result, the majority of Network Marketers do not understand the dynamics of compensation plans. This is primarily due to the lack of statistical information available in the MLM industry.

Compensation Plan Basics

The first step is to understand what type of Compensation Plan a company offers. Assuming you have a basic knowledge of MLM, here is a very brief overview of the five most common plans and how they work:

  • Matrix: A fixed number of people in width and depth paying a percentage based on each spot.
  • Unilevel: Unlimited width with a fixed number of levels that pays out a certain percentage for each level.
  • Binary: Two people in width and unlimited depth. Pays on volume cycles when a fixed amount of volume moves through each of the sides.
  • Stairstep Breakaway: Unlimited width with a volume based percentage payout that breaks away once someone in your downline hits a particular level of sales.
  • Aussie 2-Up: The commission on the first two people you sponsor goes to someone up-line from you.

Often these are designed to work in combination with each other, so it is important that you analyze your individual plan thoroughly. Ultimately, however, the goal should be to find a plan that provides the most income with the least amount of people.

Do the math

  • How many people will it take in your organization to make $10,000 a month?

I'm talking about passive, recurring, residual income on the backside, not including bonuses, one time commissions and any additional perks. This $10,000 figure can be replaced with whatever dollar amount you choose in order to reach your personal goal for financial success, but we'll use $10,000 for the purpose of our example.

While the simplest method for determining this figure would be to ask someone in your upline how many people they have and how much money they are making, they may not be exactly forthcoming in their response. So the best solution is to figure it out for yourself.

Crunch the Numbers

Although the formula for this equation is relatively simple, depending on what type of Compensation Plan you have it will probably require the use of a calculator. But the time expended on this short remedial math exercise will prove to be well worth the effort and will give you a clear idea of exactly what level of success you can expect from your efforts. It will save you a lot of frustration and feelings of failure later on when you realize your paychecks aren't quite what you were expecting.

Formula for Success

For a matrix or unilevel plan the equation is pretty straightforward. Figure out the average percentage of commission you are making on each level (usually there is a different percentage for each). Then determine the average monthly dollar amount (BV, PV or CV) spent by each member of your organization. Divide that by the average percentage, leaving you with the dollar amount generated by each member of your downline. Divide $10,000 by this average amount and you have the number of people you will need.

Example: Say you have a 5 X 7 matrix that pays an average of 7%, seven levels deep. If the average monthly purchase for each member is $50, then 7% of $50 is $3.50 per person. $10,000 divided by $3.50 equals 2,857 people.

Wow! They didn't explain that in the literature, did they?

Just for reference, for a monthly income of $10,000 a stairstep breakaway plan typically requires anywhere from 1600 to 1800 people (if you can keep them from breaking away), a binary somewhere in a range of 3000 to 5000 (taking into consideration the balancing act you'll need to perform), and a matrix about 2200 to 3200. However, I recently crunched the numbers for one unilevel plan that required almost 14,000 people!

Do your math homework

If you do a bit of investigating, you will find that there are some great Network Marketing companies with beneficial compensation plans requiring less than 500 people in your organization to make $10,000 a month. But don't just take the company's word for it. Do the math! Just because you happen to be mathematically challenged, don't let this deter you from figuring out how much your paycheck will be.
Even if math just isn't your thing, it really shouldn't take a rocket scientist to figure this out. But if you have difficulty it's worth eliciting the help of one if needed. And if you can't find one on a nearby street corner, I'm sure you can find someone who is more left-brained than you are that will be willing to help.

Don’t rely on recruiting alone

One final tip: Make sure that your company offers a product or service that has a legitimate need in the marketplace and that it is priced competitively. The company must emphasize getting products or services into the hands of consumers, not just on finding new recruits. If the company is not centered around the movement of a product or service, your success, if any, will be limited.

Article Source: http://netmlmarticles.com

Terry Montague is a successful network marketer and MLM Mentor. Download her Free eBook to learn more about analyzing your Compensation Plan, or visit "MLM Success Training-The Full Monte" for more tips and resources.

Monday, October 20, 2008

Win the Marketing War with Content

By: Hege Crowton

Are you new to the internet marketing war? If not, then I am sure you know that the best way to drive traffic to your marketing sites is through content. If you are new; however, this may be a revelation to you.

Most new people that begin dabbling in internet marketing (we call them newbies) all begin with the same question. Now that I have built my website, how do I get people to know it is here? Do I have to spend a lot of money to advertise?

The simple answer is no. Unfortunately, so many people seem to make this a far more complex issue than it really is. Newbies generally spend a great deal of time with things like traffic exchanges, banner exchanges, free classified sites, forum posting, and more. Now, I am not saying these methods are bad ways to draw free traffic to your sites. I have done all of them myself. What I am saying is that there is a better, more efficient way; and it will bring in not only free traffic, but highly targeted traffic.

How can you do this, even as a newbie? Simply by writing articles and submitting them for publication. Articles are the most sought after content online. Almost everyone needs this type of content for their websites so that they can have something to keep their visitors coming back.

Let’s look at a possible scenario real quick. For this exercise, let’s pretend that your site is about cars. You want to get visitors to your site so that you can sell them information, products or services about automobiles. Here is a simple breakdown of a process you can use to generate traffic from car buffs and people looking for exactly what you are selling.

Step One: Write a few articles about cars. They don’t have to be Pulitzer Prize winners. Just make sure they offer something that will catch a reader’s attention and inform them of something they either do not know or want to hear.

Step Two: Add a resource box to the bottom of your articles. This is a very important step. Your resource box is to identify you as the author and to tell your readers that they can find more information that they may be looking for by visiting your website. Be sure to place your website link in this resource box.

Step Three: Spell check and grammar check your articles to make sure they do not contain any spelling errors or words out of place. You want your readers to look at you as an expert in your field. No one takes anything seriously from a poorly written article that is full of mistakes. (Most word processors will have a spelling and grammar check built in to help you with this.)

Step Four: Submit your articles to directories where others can find them to read. Also, allow others to use your articles with your resource box intact on their own websites. You will be surprised at the extra traffic you will gain, plus you will also gain links back to your site from other sites online.
Note: When submitting these articles, don’t just look for basic article directories to submit to. These are great to get your articles out there, but your writing may just get lost in the shuffle of so many topics and other content. Be sure to submit to niche directories that only pertain to your article topic. This is an important step because people will go to these niche directories only looking for information on your topic.

Step Five: Don’t just sit back and wait for the traffic to come, and it will…but start the process all over again. You can do this for every website you own. You will be amazed at the results. Over time, the more content you can create and submit to these niche directories, the faster your traffic will grow and the more your site will become a cash generating machine.

Do you see how easy this all is? Don’t quit doing the other things you do to generate traffic, as they all will serve their purpose; but make sure to spend your time most on the simple things that will generate the best outcome.

Do you want to win the war in internet marketing? I just added something to your arsenal that is nuclear. These five simple steps are the secret weapon for internet marketing soldiers to take on the enemy and win.

Article Source: http://netmlmarticles.com





www.SubmitContent.comSubmitContent.com is a network of highly targeted niche directories filled with articles on all topics. Please visit www.SubmitContent.comSubmitContent.com
Copyright 2005 SubmitContent.com

Saturday, October 11, 2008

Funded Sponsoring System for Home Businesses and Entrepreneurs
Copyright © Rahimah Sultan

http://www.payitforward4profits.com/rahimah


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In addition to being able to use the system beginning on October 14th, 2008, right now he's giving away $10,000.00 in cash prizes to affiliates that promote the site during the pre-launch and launch phase. This could be just what you’ve been wanting for your home-based business.

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Thursday, October 02, 2008

Pay It Forward 4 Profits: Funded Sponsoring MLM System by Alvin Blacknall

According to some statistics, only 5 percent of home based businesses managed to generate the kinds of profits that are dangled in front of people to get them to join some kind of MLM system. This is mostly because MLM schemes are not about selling products but about creating massive down lines. The bigger the downline, the higher the profits.
The fact is that after exhausting the warm market (friends, acquaintances, etc.), most people have to resort to some sort of lead generation, finally making cold calls and repeatedly pressuring prospects into becoming paid members in the down line. Problem is that these members are not likely to do what you did and you are stuck one level deep with very few members.

A good solution to this problem is the Funded Sponsoring Franchise System. As a practice, it has been around for quite a while, before the Internet came along. It is only recently, thanks mostly to the confusion between legitimate MLM opportunities and the uncountable pyramid schemes offered, that professional MLM system owners realized that a lot of people were not being able to promote their home based MLM business due to misleading information or simply a lack of adequate marketing skills and tools.

In a very rough form, the Funded Sponsoring Franchise System is basically a business-in-a-box model. Companies that are serious about expanding their markets, do not wish to have affiliates who cannot make money because in the end, it is a loss to the companies. Professional MLM system providers now include a small model of their own business which basically means, This is what we did to succeed, this is how we did it, and here some easy steps for you to follow to make your home based business a success so that we all can profit from it. Sounds nice doesn't it? What this entails for the owner of a home based MLM business is that all the time that you spent on making cold calls, convincing prospective down line members with long drawn out pitches about the greatness of your company and the uniqueness of your products, can be utilized elsewhere.

You no longer have to spend cash on purchasing leads or other marketing gimmicks that affiliate are usually having to do to break even. Your market need not be restricted, once you are out of all your warm-market prospects.

What the Funded Sponsoring Franchise System does is that it helps the average owner of a MLM home based business owner target already pre-qualified prospects that might be interested in working from home. Think of it as a large automatic lead generation system that is running for you all the time. You can promote your website if your business is online or you can simply promote products as an affiliate. The biggest benefit of the Funded Sponsoring Franchise System, as compared to other tools for affiliates, is that there is either little or, sometimes, absolutely no money that needs to be spent on advertising. After all, your little franchise is already funded.

Once this is made clear to all the prospective leads the system generates for you, it becomes easy to convert them, because who wouldn't wish to own a MLM home based business if it can actually sell itself with just a little help now and then?

Any good Funded Sponsoring Franchise run by a truly professional company will involve a detailed outline of a business plan that can easily be replicated by anyone, even people with no marketing skills or experience, to establish a home based business. Another thing people participating in Funded Sponsoring Franchises learn quickly is that while it might make good sense to focus on one area of business to generate a home based income, in the initial period when someone first begins to dabble in this field it is safest to build multiple streams of income. This means a careful and prudent selection of several income generating programs. There are many websites out there that provide training and information on home based businesses using the Funded Sponsoring Franchise System. One of the reasons why you need to spend so little out of pocket is that with multiple income streams you can reinvest the profits from one stream into promoting all the others at a very nominal cost. Following this simple principle, it is possible for anyone to build a substantial long-term residual income stream.

The training provided is not complicated or too technical, in fact it mostly consists of what you might call advice giving sessions in terms of audio clips, free leads, well paying affiliate programs, free websites, etc.

Most MLM home based businesses are failing because they simply do not know how to succeed. The Funded Sponsoring Franchise System is one of the few methods available that can guarantee a reasonable amount of success as the minimum.

About the Author

Alvin Blacknall's a successful network marketer that's helping others achieve financial freedom. Discover how you can join a successful team of entrepreneurs.

www.cashflowinfinity.com