Common Mistakes Of Network Marketing

By Author: S. Baba
Total Articles: 5
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If you are looking to build a successful network marketing business, you will have to face the challenges that come with it. There will be several pitfalls that you should be able to recognize and avoid, if you have to be successful in your network marketing business. Network marketing has attracted a lot of negative stories and it becomes difficult to turn every stone and determine which ones are real and which ones are fake. This situation is further compounded by the fact that a lot of it is a gray area. For example, if you are invited to a friend's birthday party, will you take this chance to meet new people and introduce your network marketing product? Will you pay up more to your network marketing company for higher commissions in return?
These are some questions that you will face in your network marketing business and we take a close look at some common mistakes that are made every day in this business. These are things that you should totally avoid or at least be cautious about.
Avoid the scams: It is not without reason that people are skeptical about network marketing. A lot of ponzi schemes have ...
... cropped up over the last few years which are not totally legitimate and will not help you make money at all. When evaluating which business you should do network marketing for, think of how the company will make money. In order to keep paying you, they should have a sound business model and if it looks to you that they don't have a sustainable business model, then stay away.
Don't mistake social gatherings for selling opportunities: A lot of people who are new to network marketing mistake social gatherings for selling opportunities. Do not mix your social life with your business life. This will only lead to frustration and failure. There is a difference between using your social network for sales and using your social gatherings for sales. The former is the key to success, not the latter.
Don't neglect your existing customers: A lot of times it seems that the success of network marketing is in recruiting more members. That is not true. The success of network marketing is in selling more products and not having more members. So, focus on your existing recruits and customers. Keep in touch with them and that will help you sell more to existing customers and make more money. Keeping in touch with existing recruits also helps to cultivate their skills. If they are more successful they will bring more recruits and more profits, which will benefit you eventually.
Don't get into network marketing without willing to work hard: Don't get into network marketing thinking that you will recruit some people and they will work for you. There will be a lot of hard-work initially that you will need to put in to make the sales and get the ball rolling.
Don't wait for years to make a profit: It is true that it may take months or years in order for you to make a sizeable profit from your network marketing business. However if the product is good and the network marketing plan is legitimate then you should at least start seeing some profits in the first few months. You should be able to make a sale and make commissions. If you are making commissions but they are being held back to buy more inventory forcibly, or if the company is holding them back for a training program or something else like that, then you need to be concerned.
Don't get into a program which requires payment for earning bonuses: There are several plans that require one to invest in order to fully reap the bonuses. For example you may not earn a particular bonus till you go through a training program or till the time you buy inventory up to a certain level. All this doesn't make any sense at all. If you have made the sales then you are entitled to all the bonuses and should get it. Do not get into network marketing programs that put in riders on how you will earn your profits.
Be wary of rewards on just recruiting: There are some network marketing plans that reward you based on the number of people you helped recruit. While this is alright if this is just a small amount, be cautious if the bonus amounts are really big. Such plans often turn out to be fakes.
Beware of programs that require constant investment: Before you join any network marketing plan, check with someone who is already a member about the kind of investments that are needed. While you will need to buy the inventory of the company to sell it, they shouldn't be forcing you to buy anything else. Everything else should be pretty much voluntary. If you are needed to buy more and spend in the network, then you can investigate more in the nature of such programs.
So, there you have it, some things that you should keep an eye out on when you are looking to evaluate a network marketing program or when you are executing that program yourself.

This article is written by S. Babu, A network marketer with several years experience in Internet Marketing. He has helped several people to work from home and make a full time income. To know about the companies he work for visit his website at http://www.cyberbusinessinfo.com