Although i am a huge Network Marketing fan, it sometimes sucks…
On the face of it, network marketing should be very effective. You buy a product, recommend it to all your friends and earn a commission on what they buy. This ‘word-of-mouth’ advertising is what the big TV advertisers most fear: your product endorsement to your friends actually carries much more clout than an expensive tele-ad.
So, you earn a few pennies or bucks on each sale. But the big money comes (or is supposed to) when you recruit your friend to do as you have done – to recommend the product to all their friends – and recruit them into the network, too. And you get a few bucks on their sales, and as your network grows exponentially, so does your income. So why doesn’t it work?
Why do 97% of network marketers fail?
There are two main answers. First, the compensation plan. To earn anything at all you have to shift product. In most cases you have to pay a fee and buy products to start your business. This goes from $10 to a couple thousand dollars. Let’s assume it costs $500 to start your Network Marketing business, do you know how many sales you have to make to break-even?
That’s an important questions as many people who start in Network Marketing are very excited about the huge opportunity, but they don’t actually know how many sales they have to make to recoup their investment. In most cases if you bring in another person into your business you get paid according to the compensation plan. The problem is that in most cases, you only make a few percent between 5-20%. Let’s say your company starter kit costs $500 and for each new partner you earn $100. That would mean, that you would have to recruit five people just to break-even.
Earning $100 on $500 sale is not much. To live the life you dreamed of, to give up your day-job, to spend more time with your family, to pay off your mortgage and car loan and credit-card debts, you’re probably going to need a little more than that. At $100 you will need to recruit quite a few people to make it.
This is where the ‘recruitment’ part of the network marketing business comes in. If only you could recruit enough people into your team you could shift all that product and get rich. But you’ve run out of friends, and anyway, most of them don’t want to know or are lousy at networking. So this is the second reason why network marketers fail. To expand your downline you have to go out and recruit strangers. And most people hate doing this. It’s difficult, demoralizing and exhausting. So 97 networkers out of 100 give up and fail. The dream withers and dies.
So what’s the answer?
Making a fortune through earning 5-20% per sale is very hard and cold-calling strangers is about as much fun as pulling your own teeth.
Just forget about the traditional network marketing model. Instead of making measly commission per sale, why not make 100% commissions on product sales? Would it make a difference if you could keep all the money of a sale? I bet it would.
So say goodbye to all barriers that stand in the way of you and a thriving business …and hello to Automation, Viral Marketing and 100% Commissions and Empower Network.
100% commissions! What’s the catch? How does the company make money? Click the banner, enter your best email and watch the video to find out.
To your success
Dennis Koray
Skype: denniskoray
email: info@denniskoray.com
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