If you are thinking about starting a business out of your home in your spare time, multilevel marketing, often called MLM, may be a good choice for you. A multilevel marketing company provides products and resources to its distributors, so when you become a distributor, your job is to attract other people to become distributors, supervised by you. When they produce revenues by selling the products to customers and building their own networks of distributors, you get a cut. The key to success in multilevel marketing is your ability to attract people to buy your products or join your distribution network.
Make a List
Start your marketing plan by making a list of people you know. You are looking for two categories of people: potential distributors and potential customers. Some network marketing companies allow you to place products in existing retail stores or flea market booths, but other MLM companies restrict distributorships to individuals only. Verify the policies of your MLM with regards to who may become a distributor. Developing a distributor at a level below you — or “downline” — and customers is a numbers game: The more people you pitch, the greater your chances of success. Be prepared to pitch as many as 100 people before you find one enthusiastic distributor or customer. Even one distributor in your downline exponentially increases your likelihood of adding more distributors and customers.
Plan Your Pitch
Most MLM companies provide a script to use in pitching products and distributorships when you first start out. As you become familiar with this script you can customize it to your own style and the buying behavior of your contact list. In making your marketing plan, define the demographics of your contact list in terms of their personal buying habits, whether they can best be reached online or via traditional advertising, the approximate size of their network of friends and associates, and what element of the MLM enterprise would be most appealing. Current MLM distributors are often interested in representing additional products, so perfect your pitch and contact them first.
One way to maximize the number of people you can pitch is to hold informational events. These can take the form of parties at your home or more formal meeting presentations held in public venues such as hotels, church meeting rooms and civic clubs. One benefit of using meeting space at churches and civic clubs is the potential that they might consider distributing your products as a fundraising project. In planning your marketing, look for advantageous tie-ins such as this.
The next step in your marketing plan is to figure out how to spread the word. Word-of-mouth marketing is an effective way to attract people to your pitch events. This is done by inviting your list to your events and encouraging each person to bring a friend. If your MLM provides distributor websites, promote your events by aggressively announcing them on social media sites and online advertising sites, directing people to your distributor website for information. In most cases, once they sign into your distributor website, they automatically become your lead, and, even if they contact your MLM company directly, you will receive credit and they will be placed in your downline. Check your MLM’s policies on these types of referrals.