Understand the Network Marketing fundamentals and make sure your new people have the best start possible.

Network Marketing Basics.
Simplified Network Marketing Business Plan
Network Marketing Prospects join because
Traning the new people
A Customised Network Marketing Business Plan
Successful Network Marketing Business
Network Marketing Startup
The Newtwork Marketing Money

The Network Marketing fundamentals are straightforward and form the foundation on which to build your Network Marketing business.  Get it right, and your new recruits will have every advantage needed to succeed.

Network Marketing Basics.

Let's start with the basics.  Your Network Marketing opportunity gives you two things; it gives you the right to sell or distribute your company's products or services; it gives you the right to sell the business opportunity to others and to benefit from their activities.  Everyone in Network Marketing will be undertaking a combination of both of these activities.  The exact mix will be determined by both the company's requirements and what you're looking for.

All Network Marketing companies have some form of rules to determine what you have to do in order to be paid at certain levels.  These are usually referred to as marketing plans or compensation plans.  It seems to me that while they all claim their plans are simple, I’ve never yet actually found a simple one!

If you feel a little confused with the rules you have to follow, you're not alone.  So, here is my guide to producing a simplified marketing plan. While initially intended for you, it’s also something that your people will understand and find simple to work with.

Simplified Network Marketing Business Plan

You only need to find three key numbers.  This will be sufficient for nearly everyone in your team.  The only exception will be those people who are destined to go on to make huge incomes.  Because these top earners will have so much drive, they’ll figure out for themselves what they need to know.

The first number is ‘what the average or typical customer spends with the company’.  I think it's also good to include any taxes, postage and packing.

The second number is ‘what you will typically earn for recruiting an average customer’.  If there’s some form of sliding scale, or a range of values depending on your status, then pick a number that someone would get if they’re looking to earn about £300 (about $600) a month.  This is usually somewhere above the entrance level on the marketing plan.

The third number is ‘what you will typically earn for an average customer that someone in your team recruits’.  Again, make sure you choose a typical and realistic figure.  Keep clear of using the extreme figures that under very special circumstances, somebody may earn.

There are a couple of important points to make about these key numbers.  When you tell someone what a typical customer spends, this is what they’ll expect their customers to spend.  That’s why you need to keep it realistic!  If you give a figure that’s far too high then they’re constantly going to feel disappointed with their customers.  By including all the extras such as taxes, postage and packing, again you're setting them up to have more realistic expectations.

A similar point applies when looking at what they earn from customers, both their own and those that their downline recruit.  If you overstate the figure they’re going to feel disappointed.  My preference is to be slightly on the low side so they feel good when they get more.  I much prefer to run a business with lots of good feelings, than with people feeling disappointed or inadequate.

We will use these numbers later on to help someone put together a personal business plan.

For more information on this topic please read the article on Focus on the Right Network Marketing Statistics and watch your team grow.

Network Marketing Prospects join because.

The next topic in the Network Marketing fundamentals is: Why do people join your team? 

In reality the reasons are as varied as people. However, here are some indications of the major reasons people join you.  Being aware of these means you're better able to help your new people get what they want.

The first group of people I call, the ‘Dabblers’.  They're the sort of people who buy new gadgets, try them for a while but then move on.  That's absolutely okay. Treat them well and they could well return in the future, especially if they have a need for the products or services of your company.

Next is the Wholesale Customer.  Sometimes people join as a distributor with your company so they can buy the products at discount prices.  This may not apply to some companies that have one fixed-price that everyone buys at, so there’s no discount for volume purchase.  Once again, treat these people right, allow them to do what they want to do, and you'll find they contribute to your group’s volume each and every month with no hassle.  Make sure they’re always made aware of any special offers by the company.

The next group, ‘the Belongers’, are interesting.  We all have an element within us of liking to belong to something bigger than ourselves.  If you've created the right social environment in your team where people feel comfortable, many people will want to join just for that.  Generally, they'll consume the products themselves and occasionally do a small amount of work.  These people will turn up to many of your events, be supportive of others and be generally just good people to have around.

Next come the people who are looking for a little extra money.  They really come in two types.

First we have the people who realise they need a little extra for the household budget to keep things together.  If you help them treat their Network Marketing business a bit like a part-time job, then you’ll do well. 

Secondly, there’s what I’ve heard referred to as ‘anger money’.  This, typically, is a woman who doesn’t work and all her money comes from her partner.  For some reason, she's not getting the money she needs and wants.  These people can be very driven, and with the right support can rise up to be significant business builders.  However, don't expect them to put their family life on hold. The business must fit in around family life.

Most network marketers find that the majority of their group is built by the above people, who are looking for a little extra money.  If all you did in your Network Marketing career was to support such people, you could build an income level to almost any amount you wished. 

The next two groups do exist - but are much rarer.  By using the New Paradigm Network Marketing, you don't need such people in your team in order to succeed.  It’s a nice bonus to have them though!

The first of these groups consists of those who are looking to replace a job.  They have their reasons for wanting to have their own business, rather than working for someone else.  By finding just a few of these people you will secure your own financial future.  You’ll have to make sure they know what they have to do to succeed.  You’ll have to be a good coach and mentor to them.  Sometimes you'll have to slow them down. At other times you may need to speed them up.  Don't allow them to quit their job before their business can support them.  From finding such a person it will take anywhere from 6-18 months for them to develop the majority of the skills they need to succeed.

The final, and exceptionally rarely group (perhaps ‘individual’ is a better term) will be someone who is going for the really big money.  These are the empire builders.  Give them the minimum information they need to get started, make sure you introduce them to key people in your downline, in the company and in the network at large.  Then keep out of their way!

I know a lot of people say that this is what they're looking to do. However, very few have what it to takes to follow through consistantly with those intentions, so don't go by what someone says - go by their actions.

Empire builders are exceptionally rare.  The most optimistic figure I’ve seen is one in 5,000 prospects you talk with.  On the other hand, how many PowerBuilder's are there in your company?  And how many distributors are there?  However, with the New Paradigm Network Marketing you don’t need such people in order to have financial freedom.  Traditionally, much has been said about trying to recruit people like this.  Yes it can be fantastic when you do, but they’re so rare that most people will never recruit such a person.

My recommendation is to build a strategy for your Network Marketing business that will allow you to reach the levels you want without finding such a person.  Then it's in your control and you know you can achieve it.

How you determine which group a person is most likely to belong to is based on the actions they take - not on what they say.  Observe what they're actually doing rather than what they're saying they want.  But also make sure that everyone feels okay with where they’re at. By making people feel wrong in some way they feel uncomfortable, and discomfort can be the first step to people leaving your business.

Traing the new people

Next within the Network Marketing fundamentals is: Getting clear what your role is with your new people. 

If all these people knew what to do and how to do it to get the money they're looking for, they would have already done it.  So your role is helping them to find out what to do and how to do it in a way that will work for them.

Help each person in your group find ways to connect with more people, then to have conversations that could lead to business.  Build upon their strengths as a human being and what they naturally do.  Long term this will save you a huge amount of time.  It's far better building on what’s already there than trying to teach them to do things in ways they feel uncomfortable.

Next, you have to work with them to show them how to do the business.  That includes how to talk with people, how to find out if they can help someone, and how to get someone started in the business.

In Network Marketing, most people do nothing because they have no idea what to say or what to do.  They may have read all the books, been to all the meetings and listened to all the CDs, but unless they’ve actually practised it, when it comes to a real life situation they don't use this knowledge.  This is because it’s not yet automatic for them to do so.

By helping each person to practice just a few simple skills that naturally weave into the way they normally do things, they’re much more likely to use them.  In turn, it increases the likelihood of finding new customers and new business partners.

What you'll find, with time, is that the majority of network marketers in your group are only ‘spare time’ workers.  90% wouldn’t be an exaggeration, so if you bear this in mind you can avoid distracting people into unnecessary tasks.  When people work in their spare time, all of it could be consumed just reading e-mails, watching videos and listening to conference calls.  The result is that they don't have time to go out and find new people to connect with.

A Customised Network Marketing Business Plan

Let’s now bring together some of the ideas on this page to explain how I produce customised business plans for people who join my group.  If I just tell them what they have to do, then they don't take ownership and it’s less likely to be done. But because they're involved in designing this business plan, they’re far more likely to follow it. 

Firstly, I need to find out from them the ways they would like to connect with other people. Then I help them to identify some additional skills they may need.  Next we need to work out how much they have to do to get the income they're looking for.  So, based on the average customer spend of your company and what you earn for a personal customer and a customer in your team, it’s possible to put together a plan with a blend of personal and team customers that will give the income my new business partner is looking for.

Something to bear in mind in this process is that you may well find people who are very happy gathering customers but they’re reluctant to recruit other business partners.  If this is the case, just focus on helping them to gather customers.  Trying to force people to do things they don't want to do can result in them being more likely to walk away.  Which is better, a new person deciding to quit because they can’t do the business, or someone who gathers tens or even hundreds of customers over the next few years?

If people wanted bosses telling them what to do, then they’d get another job.  Network Marketing offers people the opportunity to run their own businesses, and that means THEY run THEIR OWN businesses.

Continuing the design of the business plan - you can talk with the person honestly about how many people they’re likely to have to talk with to find the customers they're looking for and the business partners they want. 

I believe it’s important that, from the very start of a new person's business, you talk to them about customers rather than volume.  I know many marketing plans focus on volume. However, it’s customers who consume this volume.  If you keep people focused on gathering customers rather than shifting volume, this helps them to adopt a better mindset towards building the business.

Next comes the ‘being realistic’ part.  If someone is looking to replace a salary within three months but they’re only prepared to put in two hours a week, it’s highly unlikely it will ever happen.  So, in the design of the business plan, I work with my new business partner to help them fit the amount of work required, into the time they can give to this project.  Remember, all through this process it’s your new business partner that has to make the decisions - not you.  If they decide what to do, when to do it and how to do it, it’s more likely they’ll commit to it.  If you tell them what to do and how many hours they need to put in, then you become just another boss - and I suspect most people are fed up with bosses!

You’ll need to be prepared for some potential new business partners to walk away when they discover what they have to do.  There are people out there looking to get rich quick by doing virtually nothing.  If you still need convincing, just look at the adverts out there offering ever wilder claims! I see little point in persuading such a person to join my Network Marketing group only to get disillusioned or fail.  Nobody wins and it consumes a lot of my time, and time is the most precious commodity we all have.

Network Marketing Startup

Now how do we get this new business partner started?  It's simple! Ask them what they need to know next, or what skill they need to develop.  Work with them.  It's their business plan not yours.  It's their goals and their dreams, not yours.

Standard training by you, your group or your company just ends up telling your new business partner what you think they should know.  Usually the training contains far more than is needed - large amounts of information on the products, the marketing plan and so on.  Quite often people leave the training feeling slightly bewildered.  They didn't realise how much they had to learn before they can start the business.

To turn the whole thing around, focus on them and the next thing they need to in order to move their business forward.

Throughout all of this, it's important for you to remember what the real glue is that holds people in your Network Marketing business.  It’s better explained on this webpage  -  The glue that holds your Network Marketing group together

Probably the only area about which I get a little insistent with my new business partners, is practice.  Often I'll use my time with them to allow them to just practice a new skill; just saying new sentences out loud to me, multiple times, until they feel comfortable saying it.  I'd rather my new partner made their mistakes with me than when they're talking to people live.

Successful Network Marketing Business

A brief note on what makes a successful Network Marketing business.  A truly successful business will have a large number of people consistently doing a modest amount of work.  If the business is based on a few people doing a huge amount of work, then it’s fundamentally unstable.  If something were to happen to one of the big producers in your team your business could start to collapse.  With large numbers of people doing small amounts of work consistently, then you have huge resilience.

The Newtwork Marketing Money

And the final thing on this page is how to help those individuals who are looking for large incomes, either to replace or improve on a salary.

The world of Network Marketing is changing very rapidly. Techniques can soon fail and new ones need to be found.  Adverts that worked last year may no longer work this year.  If someone is looking to earn a large income then they need to become independent of you.  If they have to keep turning to you for more adverts or ideas, then ultimately, you become the limit on their business.  This helps neither of you.

You need to help your new business partner to become an entrepreneur.  There’s nothing magical about an entrepreneur, it’s just a person who looks for opportunities and finds ways of taking advantage of them.  If you look back to primitive societies, the farmer produced his goods, the potter made his pots.  They had to find a market to take their goods to and they had to trade profitably to give them the money to continue.  That demonstrates simply all the skills of an entrepreneur.

So how do I help my business partners become entrepreneurs?  It’s actually rather straightforward.  I help them to develop other business ideas outside the Network Marketing business.  I will guide them to ventures that are complimentary to their Network Marketing businesses.

What happens as a result of this is that the person develops new skills and, like an entrepreneur, starts to think for themselves.  In addition, they tend to start to appreciate the Network Marketing business more, for when you try to run a business by yourself, it can be quite tough.