The Best Automated Online MLM Marketing System Depends On Your Business
Hey guys it’s Nathan Lucas, and in this video, I really want to show you guys what I’m doing to grow my MLM business online and what I believe to be the best strategy to grow your network marketing business online.
I’ve got a lot of value and a lot of content to get through and I know that it’s really going to help you guys.
I want to show you guys how to generate leads, how to make sales and get signups.
If you guys follow the suggestions in my video, you will start seeing results in your business.
You can watch Nathan’s video now to see his recommendations, but let us take a little departure for the moment and discuss the difference between MLM marketing and Referral marketing.
Then we will cover the idea of an automated online MLM marketing system.
Network Marketing includes both MLM and Referral marketing, but the 2 concepts are very different.
Let us start with answering the question, What is network marketing?
Network marketing basically means getting more sales by building a network of distributors or sales representatives. A manufacturer can recruit all their representatives, but more often, the manufacturer lets distributors recruit distributors. To incentivize and reward distributors for finding and sponsoring new representatives, the manufacturer lets the sponsor participate in the commissions generated by people they sponsor.
MLM is an acronym for Multi-Level Marketing, and multi-level marketing is all about moving products through the network.
In other words, a representative finds customers, take orders, passes the orders up the line to his sponsor and possibly his sponsor’s sponsor to someone who’s business is large enough to deal directly with the vendor; a distributor dealing direct with the manufacturer is typically called a Direct Distributor.
After orders are submitted up the line, the manufacturer delivers the products to the Direct Distributor. The Direct Distributor, in turn, delivers the products down the line (i.e., through the levels) until the representative who took the order gets it and delivers the products to the customer.
In the MLM construct, each distributor takes the orders, delivers the products, collects payments, and handles any returns for his customers.
Any distributor who wants to grow his business to substantial income also needs to work on recruiting new distributors so he gets monthly override commissions too.
As you can see, MLM distributors have lots of work and responsibility.
Referral Marketing Companies
Unlike MLM companies, Referral Marketing companies typically do NOT handle products, take orders, or collect payments.
All that is typically done directly with the product or service provider.
Instead, representatives or affiliates focus on referring new distributors to the business.
When a representative sponsors a new recruit, the new recruit is placed in the sponsor’s referral network. And just like MLM, referral marketing sponsors get monthly override commissions, but typically with much less work and responsibilities.
Now that we are clear on the difference between MLM and Referral Marketing …
We can discuss appropriate online marketing systems for each construct.
Traditionally, MLM marketing requires a more face-to-face recruiting model; it is typically based on building a relationship with your referrals. The reason this is important is the MLM tasks and responsibilities are so diverse, people can easily lose interest. Thus, success through the hard times falls back on the quality of the relationship.
Another reason the one-on-one relationship is important for MLM is because that is how the products move . . . down through the multiple levels to the customers.
You can use an online MLM marketing system to generate leads, but you need to predominantly focus on local leads because you will need to develop a personal relationship.
For Referral Marketing, however, you really only need to focus on finding leads and revealing the benefits of the opportunity.
When you select your referral marketing business opportunity, you need to first think about a few key points.
One of the most important points is the quality of applicability of the product or service.
Another point is how you will market the opportunity to others and how can you offer something unique. In other words, why should a potential recruit sign up through you versus some other distributor.
If you can identify a good opportunity with a stable company offering products or services that will be broadly applicable and provides a solid income, then you are onto a potentially good program.
If the product or service is also something that would be valuable to people who want to run their own business, then that is ideal. This aspect is called the USP, Unique Selling Proposition.
For example, anyone who wants an online business NEEDS an autoresponder. Thus, it makes sense to market Trafficwave as a great business opportunity because business builders actually need the service.
The Online Ad Network offers unlimited online banner and text advertising. Anyone looking to set up online marketing systems to build a passive business income will appreciate and use the unlimited advertising.
In these situations, you can set up some very effective automated online marketing systems. Better yet, you can easily set up something unique that motivates recruits to join through your referral link rather than someone else.
Take a look at them, and see if you see the Unique Selling Proposition for each.
If you are already in an MLM or Referral Marketing system, try to design and build your own marketing system with a USP.
If you are not already in one, try to find one that has an existing online marketing system that fits your interest. Also, look for how you might be able to customize it or add some kind of value to it.