The Big Money is in Sponsoring

Posted by admin | Uncategorized | Saturday 6 December 2008 1:27 pm

When you are considering getting into the network marketing industry, you have to decide what you want this business to do for you. If you are looking to make some part-time income, maybe a few hundred dollars per month, then concentrating on retail sales of your company’s products might be the best thing for you. Of course, selling products is easier said than done, and many network marketing companies have products that are priced so highly that it is almost impossible to make a significant income just from selling.

Besides that, most people, including many network marketing distributors, despise sales and have little or no sales skills. Even if a particularly skillful salesman started his or her own network marketing business, devoted all of their spare time to selling products and ignored sponsoring, it would be very unlikely that they could exceed $400 or $500 per month in profits.

But most people get into this business, especially on the Internet, to make a large monthly income and eventually become very wealthy. The only way to do this and create a passive income that comes in month after month without you having to expend a lot of effort, is through sponsoring new distributors into your down-line.

Many in this industry are afraid to say it, but only the truth will be spoken here: Sponsoring is where the real money is at. Not only that, but let’s go a step further. You don’t have to sell products. It’s not a requirement of most network marketing companies, because if it was, they would all be out of business by now. The top network marketing companies realize this fact.

Most network marketing products are priced in another stratosphere and outside consumers would be crazy to buy a great number of products from their local distributor, when they can go to their local grocery store or Wal-Mart for basically the same products at much lower prices. Research shows that 97% of sales in network marketing are from the company to the distributor, and only 3% are from the distributor to outside customers. There is very little money to be made in selling your company’s products. That’s why to really make it big in this industry you need to focus most of your efforts on sponsoring, but not necessarily recruiting.

If you are going to run your network marketing business the old-fashioned way, then you will need to recruit people into your organization, meaning contacting people at malls, gas stations, grocery stores, etc. and casually bring up your network marketing opportunity in the middle of a forced conversation. This is quite simply one of the most ridiculous, foolish, embarrassing activities that a human being can engage in, and it will bring you guaranteed failure in your network marketing business and in your life. People will run away from you when they see you, and they’ll think you’re a creep and a loser.

If you plan on mixing the traditional methods with the new-school way of doing things online with a limited amount of automation, then you are starting to move towards attraction marketing, but you will still be working the phone and ultimately recruiting people into your business, not to mention leaving people on their own to succeed once they do sign up with you, which is almost as foolish as the previous method.

If you really want to make a lot of money in this business, and easy money at that, either build your own Web site and create an opportunity that is completely automated and will build down-lines for everyone, or find an opportunity that already offers that and ride their wave to big monthly profits.

People like to complicate this business and make it more difficult than it really is. For instance, creating useless business training “tools” for your down-line or prospective down-line to buy. The reason for this is greed. This business is very simple and can actually require very little effort to make huge profits. You just have to find the right opportunity. Don’t let others on the Internet and in the traditional offline network marketing world trick you into believing that there is no such thing as “get rich quick” or that there is only one way to do this business: motivational training, selling products, prospecting at retail stores, etc.

Online stacking in network marketing is the wave of the future and it’s here right now. The people that want to jump on board with the easiest form of creating wealth the world has ever seen will benefit for the rest of their lives. Everyone else in this industry will make modest profits or lose money, and continue to wonder what they are doing wrong.

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