3 Killer Positives to Building a Network Marketing Business That Will Take You to the Top

It is the economy; it’s this damn recession; this economy will be worse than the great depression of the 1940′s.

We’ve all heard the stories coming from the lips of almost everybody we know. It’s all bad news for them. But I heard something funny a little while ago when I did my last media fast ( no news or newspapers for a period ). I’ve revealed that when you tune out the problems message, you can hear the faint sound of positive notes about the economy. The observes that I heard came from folk who knew a way to exploit a network marketing business and make cash from it through sells and selling.

After looking into it further, I spotted that during a recession, the social marketing industry really grows rather than shrinking. This expansion is just one of the various positive prospects in the network marketing business. Let’s quickly go over the others.

The first positive prospect of a Network Marketing Business is:

Folks can still work a full-time job during the day, and silently work their own business in the evening. Eventually, their evening work will shortly outrun their day job. They can employ a system that uses the net to leverage their time while they work full-time. They can also decide to use the system to retail products only, or build a bunch of business partners.

The second positive prospect of a Network Marketing Business is:

Tax write-offs. Be certain to contact your tax advisor first, but you should be ready to write off one or two business costs with operating a business out of your house. During the past, I have discovered that I could write off my office space, advertising cost, and automobile mileage ( all documented of course ).

The third positive prospect of a Network Marketing Business is:

Most parent corporations in internet marketing can be used as leverage for your home business. For the small fee that you invested to get started, you can now use your company’s logistics to supply your products to your clients; purchaser service reps to handle any disputes, questions, or returns; their warehouse to store your products; the analysis and development team to keep your business on the cutting edge; and a grouping of executives to keep a watch on market trends and make company decisions for you.

Internet Marketing and You

Getting started in social marketing is the easy part. Learning to sell and marketing is another story. Haven’t you ever wondered way 95% of network promoters fail in this industry? I did. I learned why. Many social promoters sell and market like newbies. It isn’t their fault. They are doing what was taught to them.

The strategy that is being taught to them usually gives the stigma of a used car sales representative, so that family members and chums begin to avoid them. Many new network marketers don’t realize the importance of promoting correctly and using the web as leverage to make them money. If they found out how to do that business properly, the industry would grow even faster than it is now. The days of avoidance would be a thing of the past.

To learn more about maximizing your effort in building your network marketing business and how to generate leads for free to make some FANTASTIC income online, make sure you read the instructions in the resource box below.

Four Basic Business Structures

When starting a new business, the first thing a business owner is supposed to decide is the type of business he wants. The essential factors which can help a great deal in the decision-making process include your business type, capital needs, number of employees to be hired, pay distribution plan, liabilities, legal restrictions, and tax implications.

Some common types of business structures available for you are:

1. Cooperative: A cooperative is a business structure which is organized, owned and democratically headed by people who avail its products and services. A cooperative is discrete in nature because there is a relationship between the ownership and the users of the business. A patron or user refers to a person who carries out business with the cooperative. Owner, apart from being the man-in-lead is also in one way or the other, a user of the cooperative. Cooperatives, like investor-owned corporations, have elected boards of directors and appointed officers. Board members take vital decisions. The members exert their control through voting power that is attached to their membership.

2. Corporation: The structure of a corporation is multifaceted. Rather more expensive to set up, the control of the cooperation stays with the people who hold shares in the stock. If a particular stockholder or a group of stockholders own as a minimum 51% of the stock, they are eligible to make policies and decisions. The size of the corporation will reflect on the functioning of the organization i.e., whether it operates formally or informally. Smaller corporations are likely to function less formally, however still need to maintain proper documentation. Officers – hired by board of directors – are responsible for daily management tasks and can legally bind the corporation to contracts they sign on its behalf. Furthermore, corporation is either C or S type.

3. Sole Proprietorship: thought to be the least expensive, Sole Proprietorship is the most comfortable and easiest way to start your business. It is owned by an individual who maintains all of the legal rights and responsibilities of the business. He holds control over all profits flowing in the organization and solely responsible for all debts, if any.

4. Partnership: A partnership is created when two or more people agree to avail their economic, administrative, and technical resources with the intention of operating a profitable business. There are basically two types of partnerships: limited partnership and general partnership. Limited Partnership is one which has both limited and general partners. The general partners run the business and alongside, are answerable for the debts in the partnership. Limited partners lose limited amount in case of a loss, compared to the amount invested in the deal. Whereas, a general partnership is thought to be the one which is devoid of limited partners and each partner in the deal holds administrative authority and responsibility of the debts taken for the partnership.

Business Referral Groups – How to Build Membership and Create Revenue

Are you the founder, leader or member of a business referral group (also called a leads club)? Then you know how valuable it is to have a group of people dedicated to providing business leads to each other. This focused form of networking has helped people build their business revenues for decades. But what if your group is new, rebuilding, or growing too slowly to provide a good return on investment? You need to grow your group.

How big is the right size for a leads club? You need to get the size of the group to a point where there are plenty of leads passed. The group also needs to be large enough where there’s a buzz of energy and a sense of anticipation at the referral business that will be generated. There’s not an exact number. Even a group of three or four people can make it work if they are in complimentary businesses. Fifty people might be too many to get through introductions. Fifteen to twenty-five should be workable in terms of giving everyone a chance to speak and be heard.

How do you build membership for your referral leads club? Here are six specific strategies to use.

Recruit Promoters

Look for the most enthusiastic networker you know and bring them in to your group. Their energy and excitement will help boost the morale of your other members. And, they are likely to be one of your strongest recruiters. Their successes become stories that they’ll tell to everyone they network with. Others will want to get a piece of that pie as well.

Word of Mouth

Unless you’ve got an advertising budget, word of mouth (i.e. “referrals”) is going to be your most powerful marketing tool. Even if you have a marketing budget, think carefully before buying ads. Unless you can target them, you’re likely to either spend too much to reach your needed categories or you’ll get too many phone calls from untrained networkers looking to make a quick buck. Word of mouth also allows you to control who is invited to consider the group. Compatibility is important; potential members should have a long-term mindset and understand that they have to give first. Train your existing members how to describe the group and use phrases that sell the benefits (not the features).

Show Value

When talking to a prospective member, you’ve got to illustrate the value of the group. The more specific you can get, the better. For example, the number of members is okay, but the number of leads passed is even more preferred. Can you put a dollar value on the leads passed? Money changing hands is an impressive way to show prospective members that the group is performing as promised.

Follow Up

Don’t assume that a guest will know that they are wanted as a member. Call before the next meeting and invite them back. Find out if they liked what they saw. Don’t forget to close: “Is this the kind of group you want to be part of? When will you be joining?” Make sure that they get a thorough orientation so that they understand how the group works before they sign up. Sour grapes from someone who thought they were getting instant business will poison the group’s reputation.

Invite “Power Partners”

Survey your existing members to find out what kind of businesses they could refer to the most; and who would refer back to them. Deliberately seek to invite those kinds of businesses. Your existing members should already have someone they know, like, trust and want to do business with. You may be bringing in people who are already referring to one of your members, but they’ll add to the energy of the group. Plus, the established relationship means it’s easier for other members to start doing business with them as well.

Visit Open Networking Events

Attend other events such as after work social hours. People at those events are obviously aware of the value of networking so they’ll make a more receptive audience. You can sell them on the idea of being part of a group dedicated to finding business for each other. They’ll be excellent referrers if they continue to go to open networking events.

Conclusion

The most important part of marketing a business referral group is to be consistent, persistent and active. It takes time to develop a group because it takes time for people to build up trust. Stick with it because your patience will pay off. Finally, enhance your patience with action. If you’re the leader of the group, you’ve got to be the head cheerleader and the champion lead-giver. Your members will be encouraged to follow your example, they’ll all get more business and their success will attract others.