How to Start a Network Marketing Business

Network marketing is a form of business that relies on person-to-person sales and recruiting. Individuals who earn a small profit from each sale sell products and services directly to consumers. These same people recruit more people to invest in the products and sell them. A trickle effect ensues as members of each team build their own sub-teams and everyone earns residuals off the people they sign up.

Difficulty: Moderately Challenging

Instructions

1. Choose a product that is easily stored and moved by the sales team. One of the benefits of network distribution systems is that you don't need brick and mortar sales centers or stores.

2. Recruit a core team of passionate salespeople. Ask your sales staff to pitch the product to people they already know, and encourage their friends and family to join too. Your first line of sellers and recruiters will set the tone for the company and will make the difference in the speed with which your business grows.

3. Make sure the product sample kit isn't too expensive for the salespeople to purchase. The average price should only be a few hundred dollars.

4. Keep top recruiters in the loop. While network marketing gives business people flexibility and independence, you will want to set up a solid and regular line of communications to maintain enthusiasm. Hold regular meetings and gatherings where they can share their experiences and success stories with their peers.

5. Set up a fair and equitable commission and residual payment structure that will serve to retain your top performers. Many network-marketing people start in the business part-time and as they see bigger profits, will turn their full-time efforts toward your company's success.

6. Provide regular opportunities for all members in the chains, to join together. Annual conventions or quarterly meetings are great opportunities to highlight their work and encourage them to do more.

Tips & Warnings

• Choose a reputable company, since you are investing both your time and money in this venture. Do your own independent research about the company.
• Mary Kay Cosmetics and Tupperware are two examples of well-known network marketing businesses.

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