What is network marketing? Why is it powerful? And how can you use it to build a successful and thriving business? Find out in this article!
What if there was a business model where you didn’t need to create your own product…
…where you could sell someone else’s products…
…and where you could make a killing every single month by doing so?
Well, that’s what networking marketing allows you to do.
And the best part is… anyone can do it.
All you need is the knowledge within this article and a bit of determination.
But before we get ahead of ourselves, what is network marketing?
Network marketing is a business model that typically requires you to network in order to make sales.
Avon, for example, is a global multi-level marketing company (MLM) that offers network marketing opportunities to individuals who sign up. People who sign up for Avon’s network marketing program can then sell Avon products to their friends (hence “network”) and receive a commission.
It’s similar to affiliate marketing with one critical difference: you do the selling with an MLM, you don’t just drive traffic to an affiliate link.
That’s why it’s most common for people to sell to their friends and colleagues first — those people are often the lowest-hanging fruit.
But your network marketing growth doesn’t need to stop there.
In fact, the people who succeed in network marketing don’t stop there — they create an online store, build sales funnels, and craft a fully-fledged business.
But before we dive into how you can build a successful MLM business… let’s deal with the elephant in the room.
Are MLMs a scam?
There’s a common misconception that Multi-Level Marketing companies like Avon, Beachbody, Pampered Chef, and Monat are just… well… a pyramid scheme.
There’s usually an element of MLMs where, if you sign other people up as sellers, you get some sort of benefit or credit from their sales.
This can make it feel a bit cyclical… as though it’s some sort of scam.
But that’s not true.
A pyramid scheme is illegal and typically asks for investment and recruitment without there ever actually being a real product (hence “scheme”).
MLMs and network marketing companies, on the other hand, are legitimate entities that encourage individuals to sell their products for a commission. And while many people who pursue network marketing never end up selling to more than a few friends, the business model is solid and even sustainable (even if you know how to do it).
Still, not all network marketing companies are equal.
Some are very restrictive and don’t allow you to run paid ads or sell their products online.
Others offer a pittance of a commission.
But others are great for building a sustainable income.
In fact, here are 3 things to look for when selecting a network marketing company and product.
Not all MLMs are created equal.
Here are 3 non-negotiable things you should look for when selecting a network marketing company to work with.
If an MLM prohibits you from selling products online, then your business’s growth is going to be seriously limited — primarily to your friends and family.
It’s not impossible to grow a local MLM, but it’s much harder than it needs to be.
So before signing up, check the restrictions. Are you allowed to sell products online? Are you allowed to run advertisements and drive traffic in other ways?
Those questions alone will largely determine how successful your network marketing business turns out to be.
If an MLM allows you to sell its products online, then the next question is… can you create your own store?
Why is this important?
Because it allows you to control the experience of your customers and it allows you to build your own business without being too closely tied to the MLM.
This means that you can grow however you want to grow, you can use sales funnels, and you can build it like a legitimate business rather than just throwing “parties” on the weekends.
Many MLMs now allow you to create a sales front on their own platform.
And last but not least, how much commission do you get for each sale?
This is the crux of a good network marketing business. You need to be able to afford Facebook ads and other types of advertisements and still make a profit when someone buys.
Obviously, the higher the commission, the better.
At ClickFunnels, for example, we offer up to 40% commission to affiliates who sell our service.
You can use ClickFunnels to build a crazy successful network marketing business.
Just check out the case study video below to learn how Mindy and Mandy — identical twins — used ClickFunnels to grow their MLM businesses to new levels.
Here are the steps so that you can do the same thing.
The first step is to choose what products you’re going to sell and what network marketing company you’re going to work with.
I recommend not just choosing the first one that comes to mind, but doing some research to determine if you can sell the products online, how much commission you make, and to find any other restrictions that might limit your success.
Here are some of the best MLMs to check out in 2020…
The next step is to determine who your target market is.
Because even though you’re selling someone else’s products… you’re only going to be successful if you know who you’re selling to.
You’ve got to understand your target market — who are they? What do they want? What do they fear? What are they excited about? How can you help them?
The better that you understand them, the easier it’ll be to sell to them.
Here’s an example…
Natalie Hodson sells a course that helps women recover from pelvic floor dysfunction after having a baby.
This video ad on Facebook showed Natalie peeing herself on accident during a workout, which seems crazy. But it’s actually a great hook because she knows her audience.
Natalie further hooks her target market when they arrive on her landing page, where she talks about the challenges of pelvic floor dysfunction after pregnancy…
Now that her prospect is hooked, it’s time to tell a compelling story. This is where Natalie shows her target market that she understands them and that she can relate to the difficult things they’re going through.
This story is primarily told through the video on the landing page.
Finally, it’s time to offer the solution. This is where Natalie asks the prospect to purchase her product (but this can also be an email opt-in).
And because she’s proven that she understands her target market, people buy.
Once you understand who you’re selling to, it’s time to craft your sales funnel.
In order to sell your network marketing products consistently, you’re going to need a little something that we call a sales funnel…
But don’t get overwhelmed — a sales funnel is simply a series of pages that are crafted to guide each visitor to the exact action you want them to take… whether that’s signing up for your email list or buying a product.
And they convert way higher than websites.
There are different sales funnels for different things. There’s the tripwire funnel for selling products…
…the webinar funnel for hosting an online event…
…and the squeeze page funnel for generating leads (plus lots more)…
Basically, sales funnels are a strategic and proven method for growing your online business.
But since you’re working with an MLM, you’ll be a bit limited in how you can use sales funnels.
So here are a few ideas…
Oh — and don’t forget to talk right to your target market with the sales copy of your sales funnel.
Show them that you understand what they’re going through, that you’ve been there before, and that the products you’re selling really can help them make a change.
Tip: Your first priority should be having a sales funnel that’s meant to generate leads. Most of your selling is going to happen through email follow-up. If you’re able to craft a sales funnel for selling products as well, then that should be your second priority.
Most people who start a network marketing business sell to their friends and family… and then sort of run out of people to sell to.
They might post on social media a few times and try to sell more… but still, they quickly run out of potential customers.
But here’s the thing: paid advertising allows you to consistently generate leads and make sales without relying on your immediate connections.
Some of the best platforms for running advertisements to your MLM products are…
As you start running advertisements, make sure that you’re doing so at a profit. You should still be making good money even after your ad-spend.
If you’re not, then consider signing up for an MLM that gives better commission or trying to optimize your ads and decrease overhead.
One of the best parts about having a network marketing business is that the entry threshold is very low.
Typically, you just need a little bit of money and some determination to get started.
So follow the steps from above — choose your product, determine your target market, create your sales funnel, pay for advertisements, and build an email list — and you’ll be well on your way to creating a successful network marketing business.
But enough from us…
What tips would you add?
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View Comments
Amazing and insightful content.
I am a Network Marketer and run a blog on Network Marketing top spread awareness among the people in India.
I am wondering, can I create a sales funnel without selling any products rather a way to collect leads and educate people about the Business?
Absolutely Ayush, Clickfunnels is a fabulous way to collect leads.
I'm a software seller and this gives me more details.
Happy we were able to help.
It is just awesome.. You covered all most all areas.
Question.
I have a business that sells products but I’m more desired to sell the business to promote a certain lifestyle. What funnel would be best for selling the business as well as the products at the same time?
It would be good to consult with a strategist for your own specific circumstances. Joining our awesome #funnelhacker community at facebook.com/groups/clickfunnels would be a great place to ask about those resources
I work in pest control, there is a recent product that is being introduced into the space, Its an item that is placed strategically in customers yards. We technicians have the ability lease the product to customers during the summer months and return monthly to service the units. this is a seasonal service and item. there's already a professional video created that is available that informs the clients of this innovative game changing product service combo. I recently spoke to my managers about creating a landing page or capture page with this video on it with an email and contact form to generate leads. and also how I would run some small targeted tests via Google AdSense Facebook and the likes.
it was like i was speaking a foreign language. But they definitely were interested in what I i was talking about. They told me to create it and present it for the management and if they consider it a viable approach they will run it up the flag pole to corporate for approval.
all I need is a page that host the video and a email funnel what do you suggest i use? capture or squeeze or tripwire ?
I would really suggest that you take the 30 day One Funnel Away Challenge to help you move forward with this. The One Funnel Away Challenge is a fabulous product that will walk you through daily actionable steps to create and launch your own sales funnel within 30 days. It includes support, community and motivation to keep you moving forward.https://onefunnelaway.com/challenge-c