How to Make Money in Multilevel Marketing

There's no free lunch, you're going to have to make an upfront investment and ongoing investments fo produce lead - if you're working on your own for the first time and used to office camaraderie and support, it's going to be lonely. Analyze your network of contacts for potential sales and recruitment. Don't Quit Your Day Job- start building your network of contacts first
1. Checkout your sponsor or up line then talk to others he or she has brought. Ask if he or she is helpful or were they abandoned once the upline received your "training sales"
2. Create a business plan for yourself with sales and downline recruitment objectives, strategies, target audiences and of course advertising and promotion budgets.
3. Create a personal plan - what resources are you going to live off, how are you going to sructure your time
4. Set up a home office
5. Read the contract you sign with
6. Talk with your attorney or incorporatations specialist

Lured by promises of million dollar incomes and glamorous new lifestyles, opportunity seekers around the world are blindly jumping into the shark-infested waters of multilevel marketing. The advertising can be very compelling and persuasive. But before you take the plunge, make sure you go in with your eyes open and no misconceptions about what multilevel marketing really involves.

One of the biggest misconceptions about multilevel marketing is that there's no selling involved. Nothing could be further from the truth. Regardless of what the advertising says, selling is the name of the game.

Multilevel marketing is all about developing "down lines" or groups of people you recruit to sell for you. This means convincing people, often total strangers or prospects you meet on the Internet to invest hundreds or thousands of dollars to join the program. This means contacting prospects, presenting, getting them to sign a contract and then of course, a check. Sounds like prospecting, presenting, selling and closing - or in other words sales.

Every multilevel marketing program has "proven success formulas", "foolproof profit building plans", "turn key programs" or similar plans that guarantee your success. They're all just "Sales 101"cleverly repackaged.

Down lines are the lifeblood of multilevel marketing. If you don't sell the program to a lot of them and they don't in turn sell other new down lines, you don't make money. Sounds a lot like sales and sales management - because it is.

If you can't sell, don't want to sell, don't like to sell, are afraid to sell and can't manage a sales team, don't waste your time and money. Multilevel marketing is not for you.

People invest up to $20,000 or more in a program, don't succeed and then drop out. Why? They don't sell and manage the sales process so they don't make money. That's why the attrition or turnover rate in multilevel marketing is so high.

Even if the multilevel marketing company claims to have sales centers and websites and software that do all the prospecting, if you don't sell, you won't succeed. In addition, using these sales centers or money machine websites usually cost you additional money and require you to make additional investments in lead generation advertising and company sponsored co-op ad programs.

The people who make the most money in multilevel marketing, company execs included, are all strong sales people. Their ability to sell would make them successful selling any product for any company.

Another misconception about multilevel marketing is that there's no or very low start up costs. There's no free lunch. All MLM opportunities have an initial investment ranging from $500 to over $20,000. This is an insurance policy for the company that guarantees they make money even if you don't. It's a "win-win" situation for the company, they win if you fail and the win even bigger if you succeed. For you, there are no guarantees.

All MLM programs lead you to believe you can make hundreds of thousands or even millions of dollars in a very short period of time working only a few hours a week. It's true, if you're a good sales person, you can make a very good money, maybe not millions, but at least a sizable six figure income. Just not working part time and not in a couple of months. Like any business, being successful in multilevel marketing takes both time and dedication.

If you've decided willing to do some serious selling, invest money and dedicated the time needed to succeed, the next step is selecting the right MLM opportunity for you. With so many opportunities, where do you start?

Start by selecting an industry you find interesting and enjoyable. If you love to travel, there are dozens of travel-related MLM opportunities, some with initial investments as low as $500. There are also a number of opportunities in the educational, health and wellness, cosmetics, financial, electronics and consumer product fields. You'll be much happier and more likely to succeed if you work at something you really enjoy.

Make sure the product is something you can sell and something you believe people will buy. Do some serious research from objective, independent sources on the industry, the companies, the products and what future growth can be expected. Don't take any company's word for it. Get the facts yourself and verify any facts they give you.

Check out all the different MLMs in the industry you've decided appeals to you most. Each has different products, compensation plans, training programs, investment requirements, costs and profit potentials.

Learn to filter out the fluff and separate the fantasy from the reality. Read a lot of ads. Hit the websites. Surf the Internet and read the good and bad about each companies. Watch the videos. Suffer through a few late night or Saturday morning infomercials. You'll quickly get the picture.

Determining the initial investment you can comfortably make is critical. There's no refunds or returns, so once you invest, there's no turning back. Realistically, be prepared to shell out at least $1000 and as high as $25,000. Investigate each opportunity carefully and get all the costs before you commit.

Any MLM program is a business, and like any business are equipment needs and operating expenses. A laptop computer, a printer, a fax machine, and a cell phone are essentials. Specific industries and programs may require additional equipment. Every program will require advertising online and offline as well, so it's also important to set up a basic business operating budget you can afford.

Most MLMs also have hidden costs. These are additional monthly or annual fees you pay them for website hosting, software licenses, membership, registration or other services they provide. Be sure to find these out up front and include them in your operating expense budget.

Analyze each company's compensation plan. Most tend to be fairly complex and involve different commission, bonus and incentives for different levels of sales performance. If you don't understand ask and have a company representative simplify it for you. Don't be afraid to ask your accountant to evaluate it as well.

Investigate the company and its executives. Check the better business bureau, state attorney general's office and Federal Trade Commission web sites for complaints and pending litigation against the company. If it's a publicly traded company, check out it's stock performance. When you really get serious about a company, it pays to invest the small amount it costs to get a D&B, Hoover and other reports on a company.

Check out each company's training and support network. Make sure they have a good one. Ask people who are in the program now (people who were in it but left -you can sometimes find them blogging or posting on community boards).

Before you make any decision, as your sponsor or "up line" to speak with other people he or she has brought in to see if your mentor was since and helpful. Many aren't or are just lousy sales managers. If you like the program, but don't like your up line, find another.

Once you've made a decision and it comes time to signing a contract or any agreement, have your lawyer read it and explain it carefully to you. Under most multilevel marketing contracts, you have no rights and various restrictions apply. They're written by MLM lawyers to protect the MLM, not you. Look before you leap.

Last but not least, write a business and marketing plan for your MLM business. Be sure to include solid strategies for recruiting, training, retaining and motivating down lines. Set specific revenue objectives along with strategies to attain them. Include your advertising and promotional plans and of course, budgets.

Multilevel marketing isn't for everyone. Research all opportunities carefully before you get involved. Just remember. It's all about sales.