Why MLM Reps Combine Internet and Network Marketing

Many wonder WHY MLM representatives combine the internet and network marketing.

Multi-Level Marketing is a $1 billion industry. There are approximately 15,000,000 network marketers in the world today.

Despite what many may think, it is no secret that network marketing works. The downside to the industry is that people claim that most representatives lose money in MLM. The reason for this is representatives:

Invest money to be representative
Invest in training materials
Invest in regional training
Invest in national training
Invest in travel expenses
Invest in hotel expenses

Combining The Internet and Network Marketing - Spending Money

While these investments are to train and equip the representative in their business, very few representatives see a return on their investment.

People invest money with the intentions of seeing a return. I said in my page Independent Business Person, that if you don't see a return on investment you're spending money instead of investing money.

It is the same concept as if someone borrowed a small business loan to:

Buy franchise
Start a landscaping company
Manage an in-home daycare
Started a restaurant

If you don't bring in enough money to pay off that loan, eventually you will go out of business. As a result of losing money, you will not see a return on investment.

The only difference in this case is you'll be losing thousands of dollars vs MLM where the amount you lose is very minimal.

Business vs Employee Mindset

MLM companies will train you how to:

Approach a prospect
Build rapport
Pique their interest
Present an opportunity
Close the prospect
Follow up with the prospect
Get referrals

MLM companies rarely train you how to:

Create a business plan
Create a budget
Personal accounting
Profit and loss risk assessment’s

Combining The Internet and Network Marketing - Employee vs Entrepreneur

There are leaders in the company who joke with you and say things like:

“don’t miss International training. Call in sick at your job. If you don’t have any sick time left call off Dead.”

“If you don't have the money to get started borrowing from a family member. That amount of money to get started is nothing, I spent that much going out to eat last week.”

The first 2 months being involved in network marketing can yield great results and possibly put you in a position to quit your job or pay everybody back you borrowed money from.

However, this is not the case for everybody. Using the example above regarding those who call off sick or borrow money from family members actually run the risk of affecting their livelihood negatively.

It's very rare when representatives are trained to go from an employees mindset to a business owners mindset.

Employee:

Works for a week or two
Works hard some days and takes it easy other days
Expects a paycheck a week after they put in work

Business owner:

Develops a plan
Creates a budget
Invests money
Analyzes the strengths, weaknesses, opportunity, and threats
Assesses their profits and risk
Work the System
Get paid the equivalent for the level of work they put in

Disadvantages of Not Combining the Internet and Network Marketing

Combining The Internet and Network Marketing - Not Using the Internet

A reason why network marketers decide to lean toward using the Internet to help with their business is:

Unforeseen Costs

You hear often that you have to attend training to become successful. This is true because you have to be knowledgeable about your company and the opportunity that you are representing.

However, many representatives go in the hole in their business when they purchase:

Training Tickets
Gas for Travel
Airplane tickets
Phone charges

A few weeks or months later you realize you’ve spent more than you’ve earned. Then you get discouraged and fall into MLM depression and eventually quit.

Mis-leading Leaders

One major business tip that business owners realize is that it is good to under promise and over deliver. What you find at many MLM opportunity meetings are testimonies of representatives that have achieved a certain level of success.

It is possible to earn an income with MLM. However, many people are under the impression that it is easy to achieve these results as well. This may prohibit many from treating MLM like a real business.

If you know you invested over $100,000 in a franchise and had to work 90 hour weeks in the beginning in order to see your dreams come true many would do it.

You get the impression from most uplines and leaders that the investment is very minimal to start and you just have to speak to a few people.

In MLM, the business is usually simple . . . but not easy.

Internet Not Allowed

Some MLM companies do not allow their representatives to prospect online. This is because the companies fear that they will represent the company incorrectly. Prospecting online could potentially expand your reach.

By not combining the internet and network marketing to prospect, you could possibly be missing out on hundreds of leads.

Hefty Scouting

Many Network Marketing companies stress to their representatives that they should talk to as many people as possible.

They tell you to get a memory jogger and right down everyone that comes to mind whether it be their family, friends, or associates. The 3-foot rule is also encouraged when you come close to contacting everyone on your warm market list.

90% of network marketing companies also have bonuses put in place to reward you for sponsoring a certain number of representatives within a certain time period. You will hear them say urgency is important.

We know that if you want to reach certain goals that you have in MLM you can’t be sluggish or lazy. However, when SOME people approach everyone with the level of intensity that is suggested it is very challenging to avoid coming across that you want to get rich quick.

Wrong Center of Attention

When you attend the meetings of most network marketing opportunities you may hear them talk about the success of the company. In fact, they may stress on the following features of the company:

Inc. 500 placement
Rapid growth
The backing of Atty. Generals
How long the company's been in existence
Impressive background leadership
Whom they sponsor
Their philanthropic activities
Their yearly revenue, etc.

These characteristics of the company are very impressive especially when they're positive. When you are introducing your opportunity, the company would have you mention these characteristics of the company to your prospects.

While your prospect would be impressed with the company, chances are that they will only be interested in how your company's products can benefit them in any way shape or form before they think about being a customer or representative.

Many network marketing companies put more emphasis on the value of the company versus the value of the product.

Advantages of Combining the Internet and Network Marketing

Combining The Internet and Network Marketing - Advantages

The following are the reasons why Network Marketers find the combing the internet and network marketing helpful are:

You literally become independent - If your network marketing company goes out of business, you still have a website bringing in leads that you can still use to generate an income from another source such as:

Another MLM company
Ebooks
Finder’s Fee’s
Affiliate Programs
e-Commerce
Membership Site

You also can use your leads for another network marketing company you decide to join in the future.

The Internet works 24 / 7 - Your MLM company tells you that you can get paid when you’re sleeping. Having an online presence allows the internet to work for you while you’re sleeping. Your site does the following:

Piques Interest
Sorts the prospects
Takes the rejection
Sends you the Leads

You wake up to people in your inbox asking you for more information on your product and/or company.

Your online presence reaches the cold market - Once you have contacted everyone on your warm market list, you have to go to the cold market or meet more people and wait to build that trust with them. Your online presence will reach the cold market that is interested in what you have to offer.

Credibility - A proper online presence that is talking about the benefits of your products or service can build your credibility.

As it does this, it will increase the trust that the prospect has for you as an expert in the field of your product or service. As a result, it will break down the barriers and negative reputations that someone associates with MLM.

It will make it that much easier for them to contact you through email or phone call to get their questions answered. When they contact you, this is where your personal skills and knowledge of the company kicks in.

This is why it is STILL important to attend your company’s events to continue getting relevant information from them.

Improve Your Chances . . .

Combining The Internet and Network Marketing - Improved MLM Results

Network Marketing is simple . . . but it is not easy.

Everyone won’t reach the highest position in the company!

Everyone won’t make a 5 figure monthly residual income!

However, many network marketers that chose to have a proper online presence got further than where they were before they used the internet.

There is a saying, “Shoot for the moon, if you miss at least you’ll land among the stars”. Many network marketers who combine the internet and network marketing to help them with their MLM business will say it is like shooting for the moon.

Many haven’t gotten to the highest rank in their company, but most have managed to at least acquire enough leads to get residual income.