Business Builder Formula

Is MLM a Diamond in the Rough?

Owning your own business has become the “new” American dream. In years gone by, the American dream meant owning your home and having a good job. That was during a time when hard work was rewarded with raises and promotions.

Now your efforts may earn you a layoff as corporate America downsizes and outsources their once “high-paying” jobs. In a tough economy, it may seem absurd to start a business, yet thousands are doing so. As more Americans look for answers, they are finding the answer within themselves.

Small business starts are up as people search for the security and the independence of being in business for themselves. Why not? History demonstrates the economy will improve and these entrepreneurs will be poised to capitalize on their risk.

We have all thought about it and that is part of the problem. Thinking is not enough; action is necessary to fulfill the dream. The options for a new business are endless, but the fact that over 90% of them fail can be mind-numbing.

The internet has changed the world and the way we do business. It has created entire new industries and recreated some old ones. Opportunities once thought of as taboo are earning a well-deserved second look. Even the big boys like Donald Trump and Robert Kiyosaki (author of Rich Dad Poor Dad) are now actively promoting multilevel marketing opportunities.

There are network marketing affiliates earning a very nice income without having to ambush their friends and family and guilt them into purchasing a highly unwanted product. Now with the internet and Web 2.0, it is possible to market a product and a business to those who are interested and enthusiastic.

Advantages of an MLM include being able to work at your own pace, a low start-up cost, and the tax advantages of a home-based business. It may be worth an hour of your time to consult a CPA for the full details.

After you find an opportunity you are excited about, look around for leadership. If you are new to internet marketing, it is extremely important to find a sponsor that will take the time to show you how to market your business properly. Mistakes can be costly in terms of time and money.

Now is the time to take a second look at network marketing. The start-up costs are thousands less than most franchise fees. Avoid hype and promises of overnight wealth. MLM is a business and it will take work and some marketing to get it off the ground.

The luxury of starting your venture in your spare time and slowly replacing your existing income is enticing. There are affiliates that are making five-figure monthly incomes with good direction and a well-established marketing plan. Remember the saying, if you fail to plan, your plan will fail.

The financial woes facing the country seem to have drained the hope and optimism we normally feel at the turn of a new year. The US economy is suffering ramifications of the mortgage fiasco and fluctuating fuel costs. Global economists fear the down turn of the United States will spawn a world wide recession. Compounding the problem is the populations’ natural tendency to cut personal spending, which can result in an all out depression.

The greatest difficulty is avoiding the fear and paralysis brought on by talk of a recession. The fact is, recessions are great for business, you just have to be in the right business! US economic history reveals the cyclical nature of recessions. Generally every eight years the economy turns upside down. This however is not as bad as it seems. There have been many fortunes made in difficult economic times. Historically the Network Marketing Industry has prospered during a recession.

MLM companies have shown tremendous growth in poor economy. The fact is consumer spending remains high and people are less apt to change careers when they are doing well. When the recession forces them off that very comfortable couch, they begin to look at their options. Now that we are facing a global recession there are countless opportunities for you world wide.

A detailed look at the history of Network Marketing dating back to 1937 demonstrates the boom of MLM during past recessions. When faced with a recession and personal financial turmoil, intelligent people look for alternate sources of income. Increasingly the answer has been MLM, and history is set to repeat itself.

It is essential to understand the correlation between low cost entrepreneurship and the economy. Recession forces people to open their minds to new business opportunities. Additionally, the increasing losses on the stock exchange will have a role in this current scenario. As Baby Boomers, who turn retirement age in numbers over five thousand every day, watch their life savings dwindle, they too will be searching for supplemental income.

The time is now to prepare yourself for this incredible growth of the Network Marketing Industry. If you are currently in a business, expand your marketing and leverage the internet. If you are not, finding a MLM with a knowledgeable team should be a priority. Robert Kiyosaki, of Rich Dad Poor Dad fame, has a video on You Tube you can see with a simple search. He explains the advantages of Direct Sales Companies. More recently Donald Trump has stated MLM is the best option for generating wealth in a poor economy.

The dramatic growth in technology and the internet have revolutionized the Network Marketing Industry. It is reasonable to make a small fortune without ever contacting your warm market. There are millions of qualified individuals searching for an opportunity every day. The internet and Web 2.0 allow you to build a global organization from the comfort of your home.

So, embrace the economy - you’re timing could not be better! The hot tip today is the pre-launch of a MLM owned by a $200 million dollar infomercial company, and at the, launch they will be flooding the airwaves with infomercials designed to drive sales. Kiiera is being talked about as becoming bigger than Monavie due to the media blitz that will be upcoming. Remember, the timing factor is critical in turning this economic crisis in your favor.

The current state of the US economy has created challenges for many small business owners.  Some have resorted to reducing their advertising budget to rescue their bottom line.  Essentially cutting their own throat.  Promoting your product and self branding are necessary to combat the ongoing client attrition.  Marketing possibilities are endless, from handing out business cards and using free classifieds to Article submission.  The key element in any business marketing plan is to identify your target audience.  Read that last sentence again and let it sink in.

When you identify and direct your advertising  toward the target market, you will attract the maximum number of potential customers per advertising dollar.  If you have a top-notch ad campaign and you are marketing steak to a vegetarian crowd, you are wasting your money.   Direct your ad copy to a specific niche of your overall market.  Once you have determined your target market, you must capture their attention and solve their problem. 

People will not purchase a product because they want it, they want what it will do for them.  It has been said that no one ever bought a drill who wanted a drill.  What they wanted was a hole.  The drill solved the problem.  Cars solve the problem of transportation.  Remember, people buy with their emotions and justify with logic. 

Statistics show consumers rarely buy a product the first time see they it unless they know something about the company or the person offering it.  Savvy marketers understand the importance of building a relationship of trust.  If you look back at your own purchases, your repeat business probably went to the person or place that you know. You likely know they provide and guarantee a quality product.  They have earned your trust. 

Market studies reveal  the average person needs to see a new product or company a minimum of seven times before they will buy.  So, the question is, on the internet, how do we build trust and continue to deliver our message once we have captured the attention of our target audience?  More specifically, how do we do this and  lower the cost continued advertising spending.

First, we attempt to capture the customer’s contact information.  Many marketers use a lead capture page.  People who are sincerely interested will give you their name and email address.  Having a lead capture page tied to your advertisement is essential to building your “Golden List” and continuing to deliver your message while building trust.  Lead capture pages are simple to build, but what you put in them will determine your success.

Now, we have targeted our market, directed our ad copy towards our customer, and captured their contact information using a lead capture page.  Now what? Part two, involves building trust over time.  We do this by continuing to offer value, sharing information is one way to do this. 

We give our customers information and in our case, we give information about building an internet business.  We continue to do this whether they buy from us or not.  This information is valuable to them and after they are led astray by others or tired of paying for what they can get for free, they will come back to you - the source they trust. You have built trust and not only that, you have positioned yourself as a leader.

As a leader, it is essential to share your knowledge and develop and empower your organization. You can do this one team member at a time, or you can leverage your time with automation.  Using an email auto responder service such as Aweber is a great time management tool.  When I build my lead capture page, I tie it to my auto responder so I don’t have to spend all day writing and sending the same set of messages over and over.  Aweber offers a very good product and delivers my emails on the schedule I set.

Advertising is absolutely necessary; there is no such thing as a product that “sells itself”.  If you are going to succeed in this economy you must continue to get your message out to the people who need to hear it.

The Federal Tax Code was written by our friends in Government. Most of whom are business owners or Married to one. It is no surprise that owning a business and more specifically a home-based business entitles one to certain tax advantages. Being able to deduct a portion of your mortgage, rent and other monthly expenses comes with the territory.

This luxury does come with some headaches. Possibly the most frustrating time for independent distributors in a Network Marketing company is the dreaded tax season. All of a sudden an entire year of little or no planning and spotty record keeping by these work at home professionals can catch up to them. The result is a mountain of stress, paperwork and accountant bills.

A possible solution is personal finance software such as Quicken or Microsoft Money. Experience will prove these do little to lesson the blow. Although useful for small to medium sized business, these programs were not designed for a home-based-businesses. Many home business owners find they are too complex, difficult to learn and filled with many features that are not needed.

Glenn Huels, along with MLM Success Tips recognized this major problem facing Network Marketing professionals and created a solution for the 39+ million distributors worldwide. The MLM Tax Helper was designed to relieve the tax time stress of being unorganized, unprepared and the total frustration with the software programs available that are just too complicated for what is needed. Having a system that is simple, very easy to use and designed specifically for a MLM business is priceless.

You will find this software is customizable for your specific business, allows you to easily enter your income and expenses for all 12 months of the year and then automatically creates for you, an income statement for all 4 quarters and the end of the year, that you can print off and give to your accountant. It also simplifies many important calculations such as the lucrative home office deduction and the mileage deduction. In addition to the software, you also receive an extensive amount of free tax help, tips and resources to help you claim all of the tax deductions you are legally entitled to, many of which most people are not aware of. All of this is compiled into a very simple, easy to use resource guide.

The software will make tax time less stressful and may enlighten the user to deductions not previously known. Improving the bottom line is always important.