Mistakes to Avoid in Multi Level Marketing
- Lying or hyping up your products to prospective clients
- Switching companies frequently
- Promoting multiple companies simultaneously
- Not being coachable
- Trying to be a lone wolf
- Not working the numbers
- Taking long breaks
- Recruiting down
- Treating your business like a hobby
- Lack of a system
What is Network Marketing
Multi-level marketing (MLM) or network marketing can be a great way to earn some passive income without spending a lot of time and effort. There is minimal risk involved as compared to other startup prospects. You don’t need any seed capital to start and your best marketing tool is word-of-mouth.
If you wish to get in on this bandwagon, then awesome. But, as with most businesses, MLM can also be a little tricky. If not done right, you may end up in trouble or face losses which is something all of us want to avoid. So, if you are planning to get into MLM business, keep a lookout for these 10 common mistakes that you want to avoid no matter what.
1. Lying or hyping up your products to prospective clients
This is the mistake that you want to avoid at all cost. Never lie about the products or services that you are providing to your prospective clients. Make sure that you are not misleading them in any way when you talk to them about your products or services. Do not hype them up.
Also, when you are hiring down line distributors, make sure that they are clear about the fact that you are not offering them a job. Be honest about how much money you are making. Don’t twist facts and don’t tell your prospects what they want to hear to enhance your business.
2. Switching companies frequently
This is a piece of very standard advice – do not hop from one company to another every few months or years in the hopes of doing better business. When you keep jumping from one company to another, you lose your credibility and your momentum. People won’t trust you anymore.
The more you keep switching companies, the harder it will be to start over and to create a good reputation. No business is fast, easy or free. You have to put in the effort and be patient to be successful. Thus, pick a company whose products or services that you are passionate about or you admire, then stick to it for at least a few years. You will see that it was worth.
3. Promoting multiple companies simultaneously
Promoting multiple MLM companies at the same time is, usually, not a good idea. Such cases are rarely successful. Your prospects will get confused about which company you are advocating and you may lose some credibility if you support multiple companies at the same time.
Building a single good network marketing business in itself is a task. Building two of them is a monumental task which is a mountain best not climbed, especially when you are just starting out. So, it is better to avoid promoting multiple companies at the same time. Pick a company you love and work on building it.
4. Not being coachable
Network marketing requires a specific set of skills that usually don’t work in a traditional business and this applies the other way too. Skills that are normally employed in a traditional business setting don’t usually work well in network marketing businesses. That is because this industry is unique by its own right.
Network marketing is a business of duplication and works best when kept simple. You may get an inclination to complicate it by trying to do your own thing. But that will not work out well for you. Always follow your upline’s system and be smart enough to seek advice from someone successful in your upline and do what they teach you.
5. Trying to be a lone wolf
This is inherent in the network marketing business itself. This is a team game and you won’t win if you try to take it on single-handedly. Do not try to isolate yourself. Work in a team and try to build your own team in the process. This is the key to success in network marketing businesses.
By surrounding yourself with other successful network marketers and people who you can rely on, you build a positive atmosphere that will help you and support you while moving forward. Stay with your team and encourage your team members to do the same as well.
6. Not working the numbers
Like in every business, MLM also requires you to crunch your numbers. You have to share your products and business opportunity with a lot of people to find customers, distributors and leads and ultimately, be successful. If you don’t work your numbers, you will fail in this task. Not everyone you talk with will be interested in what you have to offer.
Still, if you talk to enough people, you will find a few of them who are interested in what you have to offer. Make a personal commitment to talk to at least 2. 3, 5 or 20 people every day no matter what. Do that for a few years and you will look back to see how much you have grown and how big your team is.
7. Taking long breaks
Another mistake people tend to make in the network marketing business is stopping and starting their business frequently. That is, they may actively work for a couple of weeks but do nothing for the next few weeks. For them, business is not a big priority. This won’t fare well for your business.
You need to be persistent and consistent in your network marketing ventures in the long term to see good results. For that, make a work schedule and stick to it no matter what. Treat your business as seriously as you would your career. This is what is going to give you great results over time.
8. Recruiting down
This is a mistake that most network marketers make without realizing that it is a mistake. Most of them approach people at their own economic status or lower to promote their business. This is because they feel more comfortable pitching to them as they feel like they will understand them better.
This is actually a huge mistake which may cost you your business’s success. You have to always try to recruit up. Focus on self-motivated, success-minded people who are into the business to promote your business. This will ensure that your business goes up too.
9. Treating your business like a hobby
Another common mistake made by network marketers is not thinking of this as a real business and as just something subsidiary that will help them earn some passive income. They just start up and let it go with the flow instead of treating it as a real business. Thus, it ends up being a hobby and they accomplish very little.
In order for your business to be successful, you have to put in hours and work on it every day. Working on it just for a few hours a week, or taking occasional breaks whenever you feel like will reward you with nothing. Treat your business like your job and show up on time every time. Put in the hours and effort to reap its real benefits.
10. Lack of a system
All successful businesses have a system. In network marketing, you don’t have the trouble of creating your own system. Just make sure that you follow your upline’s system or the company’s system. If you aren’t willing to follow a system, network marketing isn’t for you.
You need a training system and a marketing system which is simple and proven to be effective to be successful in this business. Do not try to create your own system, especially when you start out. Follow those systems that have proven to be effective to make your business successful.