Legal Procedures to Create a Travel Agency

 

A successful travel agent is an astute negotiator, well-versed in navigating world travel, and an expert at finding enticing deals. Many professionals in the travel field are home based while others seek employment in brick and mortar establishments. If you love to travel, becoming an agent is a viable way to visit various destinations at a discounted rate. Prior to scheduling your first client’s trip, make certain you have met all the legal requirements.

Home-Based Agency

If you intend to run your business from your home office, inquire at your local municipal office for regulations pertaining to this endeavor. City governments often require a business license for home-based businesses. Additionally, local entities have zoning laws that regulate business and delivery hours, signage and noise issues. Certain homeowners’ associations institute bylaws pertaining to residential businesses. Check with your HOA to avoid violating their rulings. An optional business strategy is to join your local chamber of commerce. Not only are chamber meetings a place to promote your business, trained chamber personnel keep members informed of new local laws and regulations.

Business Names and Structures

Once you have created a memorable business name, you must register that name in your community. Each county has specific guidelines and timelines for registering a fictitious name. You must first make sure the name is not in use. Some counties have online systems you can peruse to check for an existing business name. Typically, the next step is to file a form and pay a fee. You may also be required to publish the name in a local paper by taking out an ad for a specified number of days or weeks. Another consideration is your business structure. Consult a tax account or attorney when deciding on options such as remaining a sole proprietor or forming a corporation or limited liability company

Licensing

Licenses for travel agents are dependent upon state regulations. Some states, like California, require agents who "sell, provide, furnish, contract for, or arrange the retail or wholesale sea or air transportation" to attain a “Seller of Travel License.” The California Attorney General's office enforces this law for agents who operate in California or sell travel to California residents. Thirteen other states each have specific regulations for obtaining this license. These states are Florida, Hawaii, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Nevada, New York, Pennsylvania, Rhode Island, Virginia and Washington state. Additionally, the state where your business is located may require that you purchase a sales tax license.

Certification

Although certifications are not mandatory, earning an accreditation is a sign of credibility. If you intend to intend to work for a travel agency, that firm may require that you hold a certification. The Travel Institute, headquartered in Framingham, Massachusetts, offers a Certified Travel Associate designation. Applicants must possess a minimum of 18 months full-time experience prior to scheduling the exam. Cruise Lines International Association provides four levels of certifications. Requirements vary; components include coursework, cruise conference attendance and actual sales history.

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How to Open a Travel Agent Business

The travel industry has grown at a steady pace in recent years and is highly desirable to many people because of relaxed working conditions and excellent travel discounts. If you do not have a college degree with a specialization in travel and tourism, you will need to complete a training certification course. Courses are offered through many universities as well as online. Once you have your certification, you can get started.

1

Establish a place of business. The office location needs to be in a high-traffic area of ​​town to help establish a strong presence. It also needs to be large enough for another agent in case your business expands. Make sure the property is wired for high-speed Internet and multi-line telephones; both are business essentials.

2

Acquire office equipment (computers, printers, fax, and scanner) and a payment processing equipment. Many customers today prefer to pay for travel expenses with credit or debit cards. You will need a card merchant account to accept these payments.

3

Have a custom sign made for your place of business that displays the name of your agency and telephone number. Most of your customers will be walk-ins, so an attractive sign is important.

4

Contact your local licensing agency to acquire any type of business license you may need to operate within the jurisdiction. Most states do not have specific licenses for travel agents, but you will need a general license to do business in your municipality.

5

Obtain errors and omissions insurance coverage. This coverage is important because it protects you from liability in case a booking doesn't go as planned. Most insurance agents offer errors and omissions, so contact a local agent to set it up.

6

Contact airlines, hotels and cruise lines to obtain contracts to offer their services. You will need to present your travel and tourism certificate or degree to obtain these contracts.

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How to Cold Call Life Insurance Leads

 

Cold calling is a fact of business life for many insurance sales representatives. While it can be daunting at first, it becomes easier with practice -- and easier still once you have made your first few sales. Rather than approach it haphazardly, having a well-thought-out strategy can often mean the difference between cold-calling success and failure.

1

Prepare in advance to ensure you're ready for whatever response you get. Expect to receive questions from prospects, and be ready with the answers. Have a detailed understanding of the insurance products you are selling, including their features, benefits and any special conditions, like the back-end loads typically associated with annuities. You should also have a clear understanding of suitability issues that might make one product more or less advantageous for one consumer versus another. Check with both federal agencies and the appropriate authority in your state to gain an understanding of what's permitted and what's prohibited with telemarketing.

2

Source the leads. If your agency does not provide you with leads, you might want to consider purchasing them from one of the numerous companies that supply sales leads to insurance professionals. Exercise caution, however, to try and ensure the leads are as current and targeted as possible. Ask the provider for references of other insurance sales professionals that have used their leads -- then call those references to verify the provider's claims.

3

Check "do not call" lists before picking up the phone. By definition, cold calls are made to individuals that have no prior relationship with the soliciting company. Once you obtain the leads, verify that they have not registered their phone numbers with either the federal or state do not call registry.

4

Write your script. To help you sound as professional as possible, develop a script that begins with a greeting and introduction -- “Hello, Ms. Jones, my name is Dave Smith and I'm calling from ABC Insurance Company." Always ask the prospect if you are calling at a convenient time and, if so, state the purpose of the call. Your script should also include common objections that insurance representatives are likely to receive, as well as several possible statements to help you overcome them.

5

Practice, practice, practice. Before making the first call, ask someone to role-play with you. This will give you the opportunity to practice your sales pitch, as well as overcoming the objections you are likely to receive. After that, you're ready to pick up the phone and start soliciting business.

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Ways to Legally Advertise a Business

The success of your business depends, in part, on how well you advertise it. In advertising your business, you must decide what type of audience you are attempting to attract. It is a good idea to write your ideas on paper first and create a plan of what you expect to accomplish from advertising.

Email

One of the most effective ways to advertise a business is through email advertising. Millions of people have email accounts, and email advertisements allow you to market your business to a large audience. Avoid spamming potential customers, however, and give them the option to opt out of your advertisement list. There are many companies that offer email lists and other marketing kits that can enhance your business. This type of company is beneficial because it maintains your email advertisement database and allows customers the option to cancel their subscription.

Newspaper

Local newspaper advertisements provide a great way to market your business. The local paper is a good tool if you want to test your product locally and confine it to your area before introducing it to a larger audience. Including coupons in newspaper advertisements can encourage customers to purchase your product.

Direct Mail

Direct mail advertisement can attract customers by giving them a direct visual of your product. You can include samples of the product or allow the potential customer to request samples or trial offers. Sending attractive postcards and brochures through direct mail is a great attention-grabber.

Press Release

Creating a press release for your business will give you the opportunity to announce your business to potential customers. If you are not proficient at writing, hire a professional to create an eye-catching press release for your business. There are some websites that allow you to submit your press release via their site at no charge.

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Examples of Direct Marketing Campaigns

 

Companies can use many types of direct marketing campaigns. The key is finding one that best suits your type of business. The first step in executing a direct marketing campaign is finding quality leads. The Direct Marketing Association provides lists of such leads. Another option is generating leads directly from ads. People who respond to ads are more apt to be interested in your offers. Direct marketing campaigns are designed to eliminate the middleman, including retailers and wholesalers.

Telemarketing to Reach Consumers

Telemarketing is still a viable way to conduct business directly with consumers. The key is ensuring that you maintain your "Do Not Call" lists. You can obtain this information through the Federal Trade Commission's website, according to the Direct Marketing Association. Start by finding lists of people that would be most interested in your offer. Create a phone script before calling prospects and include questions that help you qualify your prospects in your script.

Qualifying questions help determine whether people are interested in your offer. For example, as an insurance sales rep, you could say, "If I could show you a way to save money on your car insurance, would you be interested?" End the conversation politely if the person says no.

Newsletters by Mail or Email

Most people purchase newsletter subscriptions by mail, email or the Internet. Find customers by mailing to them through mailing lists, or by placing classified or display ads in magazines. Select trade magazines that appeal to people who are likely to read your type of information.

For example, advertise your bodybuilding newsletter in various bodybuilding publications. Create a sales letter and order form for people who respond to your offer. Offer a free newsletter to spark their interest. That way you have their address for future communications.

Infomercials on Television

Infomercials are television commercials that companies use to sell products. You can run infomercials nationally or locally, the latter of which is the best way to test your offer. Contact some of your local stations to obtain their rates on infomercials. Select the times that your viewing audience is most likely to watch television.

For example, teens are likely to watch television during the late afternoon or prime time, as they go to school during the day. Consider advertising late at night or even after midnight if your offer appeals to retired folks, those looking for work or night shift workers.

Postcards to Generate Leads

Postcards are a popular type of direct marketing. One reason is that they are cheaper to mail than letters. Postcards are primarily used to generate leads. Write a headline that appeals to your target audience. The headline is the most important element of any advertisement, according to marketing expert Dave Dolak. Include at least one benefit in your postcard headline.

For example, "Lose 10 Pounds This Month," is a benefit that appeals to people who want to lose weight. Include a toll-free number on your postcard for people to respond to your offer.

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How to Start a Mailing List Company

Starting a mailing list company is one of the easiest ways to start a business. The startup costs are relatively low and you do not need to stock any products. A mailing list company provides lists of consumer or business names and addresses to business clients. The client will typically pay $50 to $80 for each 1,000 names, according to Entrepreneur.com.

1

Decide the type of client in which you want to market, as it is best to specialize in a particular area rather than being a generalist. Sell ​​mailing lists, for example, to entrepreneurs who market home business or network marketing opportunities.

2

Create a catchy name for your mailing list company--one that describes your lists. Call your company something like "Premier Real Estate Lists," for example, if you are selling lists to real estate companies. Make sure no on else does not have that same company name or you could have potential legal problems.

3

Register you business name or doing business as, known as DBA, with your local county administration office. Have the agency send you an application. Apply for a vendor's license at the same time so you can charge sales tax for customers in your state.

4

Find a mailing list broker from which to purchase your names. Go to the library and look through the "Standard Rate and Data Service Direct Mailing List Source" for mailing list wholesalers, according to entrepreneur.com. Check with the Direct Marketing Association at dma.org. Call potential suppliers and choose the one that offers you the lowest cost per thousand.

5

Get a separate business line for your mailing list company. Record a brief message about your mailing lists for those who get your voicemail. Have people leave their name, phone number and best time to call them.

6

Create your own website or have a web designer create one for you. Include information about what types of mailing lists you sell. Mention the benefits your lists have over competitive lists. Include a separate order page. Give people the choice to use credit cards, as this can increase your business. Ask your bank if they will process credit cards for you, or use PayPal.com.

7

Create a brochure, sales letter and order form for your mailing lists.

8

Advertise in trade publications that your potential clients are likely to read. Advertise in insurance publications, for example, if you are marketing to insurance companies. Place classified or small display ads that invite businesses to send for more information. Mail your brochure, sales letter and order form to these businesses when they write.

9

Place your website in major search engines Yahoo.com, Google.com and Lycos.com. Find a search engine placement specialist in your area that can help you get a high ranking on these sites.

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MLM Business Building Tools

Multi-level marketing (MLM) business success depends on reaching your performance goals and empowering recruits to do the same, by duplicating your successful efforts. Your job as a company sales representative is to generate leads, build trust, turn prospects into sales and teach others your techniques. To achieve this goal, first understand the needs of potential customers, then ensure that your service can improve their life. Finally, coach your MLM team members to do the same.

Contact List

Consistently growing your contact list is the primary business-building tool for MLM business representatives. A contact list can be as simple as writing down names in a notebook. Begin creating your contact list with a "hot list" of people you already know, such as friends and family, then expand it to include a "warm list" of current and former coworkers. During the course of daily living, you can add names to your third "cold list" of strangers you believe can benefit from what you have to offer, such as grocery store clerks and wait staff. When following up with leads, first learn everything possible about the person so that you can create an attention-getting, tailored presentation that describes how you can meet their needs. Most importantly, ensure that everyone in your organization understands the value of developing and working through their own contact list. Lead by example to help others by explaining how you maintain your own list.

Word-of-Mouth Referrals

For your MLM business to grow, you must instruct everyone you recruit to always ask for referrals, especially if a potential customer has declined their offer. Your product or service might not be right for everyone, but chances are good that everyone knows someone who can benefit from your business product. Never close the door to a customer's rejection until you ask the person if he can help you by sharing names of others who might need your service. You can also approach existing satisfied customers for word-of-mouth referrals by handing out extra business cards and asking these cheerleaders to help you spread the word by sharing their experience with friends and family. Incentives such as coupons and free products can help expedite referrals.

The Power of Duplication

The best MLM businesses utilize network marketing tactics that are easily duplicated. Successful MLM sales people aren't born with the ability to generate business; they simply emulate what other outstanding representatives do within their organization. Anyone can learn to build a better MLM business through the power of duplication. This process simply entails being coachable, studying company training materials, utilizing existing approach tactics and following strategies implemented by successful representatives in your organization. While it's acceptable to tailor your initial approach to a prospect's needs, you'll be more likely to close the deal if you duplicate the proven sales tactics recommended by the company.

Product Knowledge

The most important thing for the successful presentation of any MLM business proposal is posture. One must use and be passionate about the products they represent. Before approaching customers, use your products and study your company's existing sales collateral to learn everything you can about them. Your confidence level will grow as you become an authority about what you're selling. The more you understand about the manufacturing process, the ingredients used to create the products, how they work and who they benefit, the better posture you'll have when approaching leads and existing customers. If someone asks a product-related question that you can't answer, offer to do more research until you receive clarification. When you learn something new about your MLM products, instill confidence in others by sharing that information with teammates and customers.

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How to Market an MLM Product

 If you love selling and want to guide your own sales team, multi-level marketing (MLM) could be the avenue for you. Multi-level marketing is a sales distribution method companies utilize to reduce overhead costs and create broad market reach. Companies recruit product marketers who sell products in exchange for sales commissions. Successful MLM representatives focus on creating a sales representative network, as well as engaging in consumer sales through parties or direct individual sales. The commissions received are a combination of direct sales commissions or bonus commissions received by building a team of marketing representatives. As with most sales representatives, MLM representatives should follow a sales process to help them succeed.

1

Make a list of 100 people you know and start contacting them about your new business. These contacts can include family, friends, acquaintances, neighbors or fellow employees.

2

Send an email, postcard or letter to everyone on the list and follow up with a personal phone call to each person. Let them know about your new venture and ask if anyone they know might be interested in having a party. Don't wait until you get your marketing kit from your MLM company to tell everyone about your new business.

3

Have a party of your own and invite all your family and friends. Ask each person to bring a friend that you do not know personally. At the party, ask each attendee to book a party with you. This is a great way to book future parties from the start. Even if you do not book parties from the event, get contact information for guests you do not know for follow up at a later date.

4

Create a social networking site for yourself and your new business. Use more than one network to expand the reach of your MLM business. Through social networking, provide information about your products, the business and related information that is useful to your followers. If your MLM company is offering special deals, update your site with the offer as soon as possible.

5

Start a monthly e-newsletter to tell people about special deals, and provide helpful and relevant information about your product area. Use the newsletter to establish yourself as an expert in the product area.

6

Join business networking and social groups to make new contacts and get referrals. Personal contact is another connection to potential customers, either through sales to group members or referrals gathered from your interactions. Share your product information and communicate your knowledge to others.

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How to Develop Your Own Multi level Marketing Plan

 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.

Plan Events

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.

Promote

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.

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Tips on How to Start a Business

People start businesses for various reasons. Some people invest retirement income while others start businesses because of a corporate downsizing. Some tips for starting a business include converting a hobby into a profitable venture, satisfying an existing consumer need that includes dieting, or purchasing a franchise. Once you decide on your particular business venture, create a business plan that summarizes your goals, objectives and advertising plans. Moreover, be sure to obtain any required business licenses.

Purchase Existing Business

People advertise businesses every day in the "Businesses for Sale" sections of various newspapers. You can also try contacting business brokers. Examples of businesses for sale may include small coffee shops, vending routes or even small manufacturing plants.

Start With Your Experience

Many people use their education and work experience to start a business. For example, if you have designed websites for corporations in the past, become a web designer on a freelance basis. Contact past business associates or agencies that worked with you. Advertise in trade publications of the industries in which you are trying to service. Design some business cards and pass them out at various conventions.

Go Into Direct Sales

Plenty of direct sales companies are looking for talented individuals. Some even offer training programs for their distributors. The startup expenses are virtually nothing, and some of these companies will even ship products for you. Direct selling opportunities include companies that manufacture or wholesale perfumes and personal care items, kids clothing or impulse items, such as batteries or key chain flashlights. Some companies even offer dealerships for advertising specialties, where you can sell mugs or T-shirts to companies with their logos. Check business opportunity magazines--"Business Opportunity" or "Entrepreneur"--for direct sales opportunities.

Try Network Marketing

Plenty of network marketing opportunities are out there, such as companies that market nutritional or high tech products. Network marketing or multi-level marketing, or MLM, is where you can sponsor people into a business and earn a percentage of their sales, according to Entrepreneur.com. Most people start these types of businesses part time from home. You will likely need to purchase a certain amount of products monthly to enjoy the highest commissions. Advertise your business with postcards and classified ads in newspapers or business opportunity magazines.

Enter Service Industry

Business owners need their windows and offices cleaned. Busy people need their dogs walked, groomed or watched. Think of various services that you could offer to homes or businesses. Call some of these businesses and get the going rate. For example, carpet cleaners usually charge by square footage. Produce fliers for your business and start distributing them to potential customers. Have people give your referrals to further expand your business.

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Network Marketing MLM Home Business Ideas

Networking marketing is synonymous with MLM or multi-level marketing, which entails recruiting people into a specific business opportunity and earning commissions off what they purchase. There are many different types of network marketing home-based businesses. People just need to find which one works best for them. Most individuals will typically choose the network marketing business that has the highest pay plan. However, others may prefer to work with a particular type of product.

Nutritional Business

One of the most common network marketing or MLM home business ideas is a nutritional business. However, you should check how long the nutritional company has been around to determine if it is a legitimate business. Ask to speak to customer service. Call the Better Business Bureau to see if any complaints have been filed against the company.

A number of companies sell nutritional products on a multi-level basis. Often, sponsors or active members earn commissions on many different levels in these businesses. Most of the commissions are earned on the first few levels, which include the purchases of members an individual direct sponsors or those his recruits personally sponsor. For example, a network marketer may earn 10 percent off the vitamin purchases of the people he personally recruits and 5 percent off the purchases made by people those first-level recruits sponsor.

Nutritional MLM businesses are popular because of people's keen interest in health. Nutritional products are also usually consumed each month, which can potentially generate lots of revenue for business owners and the MLM company.

Legal Services

At least one organization offers legal services as a network marketing or MLM home business. This could be a good choice for people interested in legal services such as those related to family trust, bankruptcy or tort law, which covers people's injuries in the workplace or through negligence. The best way to market a legal-based network marketing program is to order mailing lists of "Business Opportunity Seekers" or "Buyers." These people are looking to start a home-based business. Mailing-list vendors can be found online or in business opportunity magazines like Business Opportunities or Entrepreneur. Order mailing lists in quantities of 1,000, 2,000 or even 5,000. Create a postcard that provides information about your business, then mail the postcards to these people. Include your website if you have one. Direct people to an 800 or second business line so you can explain the business to them.

Selling Leads

Some companies offer phone or email leads through network marketing or MLM. In this case, you would be marketing leads to active network marketers. Most network marketers work lead MLM programs as a secondary income stream. Most lead programs are legitimate, but you should make sure the lead supplier sells leads that "pull." Try testing the leads yourself. If you are able to use the leads to recruit people into your primary network marketing business, then the leads are effective.

Most network marketers use phone or email leads to market their business. You would make your earnings off those who order the leads directly from you, and from those in each person's downline. For example, you may earn 15 percent off $100 worth of leads you sell to a network marketer. That person would then join the business himself and sell leads to those he sponsors into his primary MLM business. If he sells home cleaning products via MLM, you would earn second-level commissions off everyone in his home cleaning products business who orders leads.

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Small Business Ideas to Make Money

People can choose from several ideas to start a business. Think about skills you have acquired on the job, products you like or hobbies that can be converted into business. Search Google.com and Yahoo.com for businesses like the one you plan to start. Study their websites and see how they market their business. Plan to start part time until your business grows into a full-time endeavor.

Dog Walking

You can become a dog walker even if you are unemployed. The number of people who use dog walkers is increasing, according to Entrepreneur.com. People are busy and some families have dual-income earners. Someone must exercise or watch their dogs, as people are particular with their pets. Think of a catch name for your business and get a DBA--doing business as--and vendor's license, which will allow you to collect sales tax on sales in your state. Pass fliers out in your neighborhood to apprise people about your service. The average rate for dog walkers is $16 to $18 for a 20-minute walk. Build up your clientele until you are walking eight or 10 dogs per day. Give people a price break for walking multiple dogs. For example, charge $25 for two dogs instead of $32 or $16 each.

Consulting

Become a consultant if you have expertise in a certain field. For example, if you have worked as a marketing research manager, start a freelance consulting business from home. Contact former business associates, clients or agencies in which you worked. Contact advertising agencies or other marketing research firms to see if they have any projects. If invited, write up a proposal for any potential assignment, then submit your bid. Other types of consulting businesses are web design, search engine optimization, advertising broker and tax accountant.

As for advertising, get your business listed in the print and online Yellow Pages so companies can start resourcing your services. Advertise your business in trade publications that clients are likely to read. For example, marketing research companies may advertise in publications, such as "Quirks" or "Alert," or even "Advertising Age."

Network Marketing

Network marketing or multi-level marketing is a legitimate business opportunity. You just need to make sure the company you join focuses on selling products, not just pyramiding your earnings. Legitimate companies will require all new sponsors to purchase a minimal amount of products. For example, if you sell nutritional products, you may need to buy $100 worth of products each month. Most MLM companies will auto-ship these products or automatically ship the products each month. Network marketing is a "people helping people" business. Get three-way calling through your local phone company so you can help new members sign people up in the business. You will earn commissions on their product purchases, too.

The best way to promote your network marketing business is to purchase mailing lists of "Business Opportunity Buyers." Locate these lists through the Direct Marketing Association. Locate mailing list companies in business publications, including "Business Opportunities" or "Home Business." Create a postcard that briefly describes you network marketing company. Invite people to visit your website or call you. Most network marketing companies use conference call systems in which you can invite your prospects.

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How to Start Networking Business

 

A networking business is also known as a multi-level marketing business, also known as an MLM. Basically, it involves you recruiting other business-minded people into your organization. The new recruits will then purchase products from the networking company and will then start building their own downlines, or networks. You could earn monthly commissions from people who are in your downline when they start buying products from you. This is a legitimate business opportunity, and companies can legally sell legitimate products through network marketing. Apart from having solid business networking skills, below are the steps you can take to start your own networking business.

A networking business is also known as an MLM. Basically, the business operates on a network, just as the name suggests. To make it easier, we will start with the company at the top. The company sells you its products either on a one-time basis or on a subscription basis, where you receive a package of products regularly, say, once a month or once every two months. You, in turn, should recruit others to purchasing the company's products. If you recruit a person, they will buy the company's products and you will receive a percentage of the price they pay for the products as a commission. Obviously, the more people you recruit under you the higher your commissions. But it doesn't end there; the people you recruit can also recruit in their turn. Their recruits will earn them a commission. But, and here's where an MLM starts to get lucrative, you also earn from your recruits' recruits. For every purchase made by a recruit of your recruit, you are entitled to a certain percentage of the purchase price as commission. That way, your residual earnings can grow astronomically, depending on how far your 'downline' goes.

As you can see, there is a lot of promise in MLM. The trick is to grow your network. In this business, your net worth is literally determined by the size of your network.

Choose Products to Sell

The very first step is to make a decision about the products you would like to sell as a network marketer. There are plenty of options here. You could choose home cleaning supplies, cell phones, health supplements, and so on. Remember to choose a product line that you are familiar with and that you will enjoy working with others to market this product line.

Gather Networking Tips

The next step is to look for opportunities. You can find opportunities in home business magazines such as the Small Business Opportunities section of Entrepreneur. You will find network marketing companies you can contact. You can call some of the listed distributors, as they are people who were once newbies, just like you. You should ask to speak to their upline sponsors, who have more experience and knowledge about the company. Ask them to elaborate on the business model and the payment plan to you. They can even give you networking tips in the process. You can get a few company officers in on this via a conference call.

Choose Your Network Marketing Opportunity

You can now choose the network marketing opportunity that appeals to you the most. Join a company that offers you good commissions and deals in the products you are interested in selling. Go for commissions in the 20 to 30 percent level, so that you'll see profits faster. Your products should automatically be shipped to you every month.

Set Up a Business Phone

Have a separate business phone line for your business. You can even record a warm greeting that asks people to leave their name and contact details when they can't get you on the phone.

Start a Website

Start a website for your network marketing business. You can do this through your network marketing company. Most of them will give you a good website that is similar to the main company website.

Create Postcards

Create your own postcards or order them from your network marketing company. The company should include your website on the postcard.

Prepare a Mailing List

You should now prepare a mailing list. To do that, you will need to search for a mailing list supplier online. Choose one that sells the names and addresses of Business Opportunity Buyers or MLM enthusiasts. These are people who would like to start a home business, and are open about trying an MLM opportunity. It will definitely improve your conversion rates. For an initial test mail, order between 500 and 1000 mailing list names.

Mail Postcards

Put the mailing labels on your postcards and mail them to people on your list. When people respond to your card, call them back. You can even include your sponsor in a conference call to help you recruit people into the business. You should send the mail out every week, to step up the number of mails you send, as your profits increase.

Green Business

Meanwhile, learn everything you can about networking. Read networking books, and attend networking events to improve your knowledge. Remember, never stop learning

Tip

You can also send out email blasts to email lists in much the same way as you do with mailing lists. In fact, emails are inexpensive and might give you better results.

Warning

Participating in an MLM can be profitable if members have a lot of people in their network, and if they're willing to put in a lot of effort over time. However, nothing is guaranteed.

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How to Start Your Own Network Marketing Company

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

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