How to begin a Network Marketing business

[jas0441]

This forum is great and thanks MJ for setting me down the right path. Can anyone recommend any resources for setting up a network marketing company, like Pampered Chef or Mary Kay cosmetics for instance? I want to do some research to see what is involved and how to do it successfully. I'd love an introduction to Doris Christopher, for instance, if anyone knows her

 

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[jas0441]

By the way I am already contacting these businesses to become one of their consultants, a good way to learn about the business and how they recruit and what they offer.

 

[MJ DeMarco]

By the way I am already contacting these businesses to become one of their consultants, a good way to learn about the business and how they recruit and what they offer.

Absolutely ... join the most successful companies and reverse engineer their process. I'd imagine that starting one of these companies would involve recruitment of some "heavy hitters" as your founders/inner circle. By all means, none of this is easy.

 

[robjm]

I would research Melaleuca (Melaleuca) and its current CEO Frank VanderSloot. I overheard part of a pitch from our neighbor who is a Melaleuca rep and I thought their openness was refreshingly honest.

BTW: I'm not in any way endorsing their products or joining their MLM.

 

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[CEBenz]

I've been wondering the same thing. I understand the whole program thing. The thing that baffles me is where they have their products made. An acquaintance(friend? shrug) approached me with info on a chocolate product centered mlm. I've been part of quixtar/amway and even amsoil in the past. Never did worth a crap at either one despite my best efforts. So it had me thinking after reading MJ's book and recently being approached, how a person would go through the process.

 

[smith360]

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.

 

[The Intrepid]

I joined Quixtar at 16 by having my father join to sponsor me. I quit the day I got the IBO kit in the mail and ran the numbers...

I actually befriended a high level MLM guy and it's amazing how they think of their reps. They're sheep that will believe a good pitch, almost expendable. They'll never tell you that in public though. Too messy for my tastes, especially considering you have to be the face of the company in order to sell the dream.

 

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[CEBenz]

Other important issues:

Miniscule margins
Less than competitive pricing
Dealing with the people that fail to execute (remember what MJ said about events)
everyone you attend functions with is a potential competitor.

Reminds of a joke:

The lottery is a tax on people who can't do math.

 

[jas0441]

Thanks everyone for the feedback. Yes good way to describe what I am doing, 'reverse engineering' it using a successful program as my model.

Right now I have too much product (bottled wine, I manufacture it in my winery) so not too worried about small margins, better than it sitting in my warehouse. But I hear you about dealing with your salespeople, and them not following through, etc. It might be simply too much work for too little return. That is what I want to find out.