Network marketing or MLM can be a viable opportunity, provided the emphasis is placed on selling products rather than signing up new members. In order to start your own network marketing company you can enroll with an existing MLM organization or start your own from the ground up, but if you go the DIY route you'll need to establish a relationship with a wholesaler or manufacturer to turn out your actual product.
Find a Niche
Select a product line for your network marketing company. Start a nutritional network marketing company, for example, which is the most popular type of network marketing business.
Wholesale Suppliers
Search for a wholesale supplier through the National Association of Wholesaler-Distributors at Naw.org. Attend NAW meetings to become more familiar with wholesalers. Sign up for some free trade publications through Tradepub.com, according to article titled "Find Suppliers for Your Business" at Businessknowhow.com. Examine the "Thomas Register of American Manufacturers" at your local library.
Call several potential wholesale and manufacturer suppliers. Ask them if they offer drop-shipping services, which will keep your inventory levels down. Find out if the supplier offers catalogs, brochures and order forms for their products. Choose the supplier that provides you with the lowest unit cost per product.
Set Price Structure
Set the retail price of your products according to your supplier's recommendations. Establish a commission structure for your distributors on several different levels. Set commissions at 10 percent, for example, for first-level sales where distributors earn money off those people they recruit. Set commissions on levels two and three at 5 percent each, for example, allowing distributors to earn commissions off people your distributors recruit.
Organizational and Management Setup
Install network marketing commission-payment software. Use your commission-payment software to calculate the commissions of all future distributors.
Create an instruction manual for all distributors, highlighting various ways to advertise their network marketing businesses. Create a distributor's kit for all potential dealers, which includes the instruction manual, a catalog, price list and order forms.
Marketing Your Business
Advertise your network marketing company in major business opportunity magazines, including "Business Opportunities," "Home Business" and "Small Business Opportunities." Start with classified ads as they are the most cost effective of all ads.
Mail a sales letter brochure and order form out to people who respond to your classified ads. Call people back when they inquire about your network marketing opportunity. Recruit distributors into your business on an ongoing basis.
Create a website and include your website in your classified advertisements. This will give people another way to join your network marketing opportunity. Get a merchant account through your bank so you can accept credit cards online. Find a web designer if you are unable to create your own website. Have the web designer create self-replicating sites for your distributors so they can recruit their own distributors. Self-replicating sites will have the same URL or address as your site, but with unique extensions or identification numbers. The success of any networking marketing company is contingent upon building a deep organizational structure.
Things You Will Need
Wholesale supplier
commission payment software
Instruction manual
Catalogs
sales letters
Brochures
Price lists
Order forms
Shipping envelopes or boxes
Shipping labels
0 Comments: