The birth of the Internet has brought about many revolutionary changes and has even fostered a flourishing industry, the infamous dot com industry. however, it has also caused the downfall of many when the dot-com bubble burst.

More and more businesses have expanded online, and it’s no surprise that network marketing businesses are also looking to operate online. In a nutshell, network marketing is basically a new business model that bypasses the middleman in the distribution chain where the cost savings go to distributors and/or customers.

Additionally, existing distributors can sponsor others to help them, operating similarly to franchises, thus earning the term “human franchise.”

One big question remains.

“Can a perfect synergy be achieved between the Internet and Network Marketing?”

Judging from the above examples of Ebay, Amazon.com, and other online businesses, there seems to be great potential for a home based network marketing business over the Internet. Countless online business opportunities already exist, many applying compensation systems or plans based on conventional network marketing.

“How can one be a successful network marketer online? Is it possible to build an active online organization that gives you residual income?”

This article will not delve into the intricate workings of online networks; however, a 4-step guide to operating an online multi-level marketing (MLM) business will be provided to give beginners an overview of how to build a successful home. Network Marketing based business.

Step 1 – Get out there and start recruiting

MLM is also known as network marketing and for a very good reason. To be successful in the network marketing industry, one has to “connect with people” and “market products or services.” This is also the reason why network marketing is also called word of mouth marketing or viral marketing. The bottom line is that you need to go out and sponsor like-minded people in your organization, whether they’re stay-at-home moms looking to earn extra income or people looking to achieve financial freedom.

Why?

And the answer is leverage.

What is leverage?

Perhaps a simple illustration will give you an idea. Think of Bill Gates. While he sleeps, the other half of the globe is working for him. How is this possible? This is because Bill Gates receives royalties from every sale of a Microsoft product and the products are sold all over the world. Bill Gates doesn’t need to physically sell his products; instead, he has others do it for him and receives a small cut of the sale.

The same effect occurs when you recruit or sponsor someone into your network marketing business. From the moment you sponsor your first person, you have gained leverage. This is because you now have 48 hours to work instead of 24 hours when you work alone.

Leverage is exponential. After you have sponsored your first person, this person will also want to expand your organization by sponsoring others who are also part of their organization.

Using some arbitrary numbers, you can see the exponential effect for yourself. You should also aim to sponsor “business associates” and not “employees.” It is important to have the correct mindset that network marketing is not a job but a business, so one should not evaluate it as one would evaluate a normal job.

In the network marketing industry, the people you have sponsored are called your “downlines” and you are their “upline”. Network marketing is a people business, trying to do it alone, superstar salesman style will defeat the purpose of the business model. Play it smart by duplicating more of yourself to increase your earning potential.

Step 2: Monitor your organization’s sales volume

As more and more people become part of your organization, it’s important to track your individual sales record as well as statistics on the sales volume of the organization as a whole. Operating a home based network marketing business online provides some advantages in this case as many online network marketing companies provide their members with an online portal where they can view their sales volume at any time.

Tracking the personal sales volume of each individual in your organization will allow you to identify who is having problems so you can focus your efforts on them. It also allows you to identify potential high-level flyers that you can turn into future leaders in your organization.

Step 3: Monitor your inventory

Once you have completed step 2, step 3 becomes natural as it is important to ensure a constant supply of products to the customer to ensure customer satisfaction. Always anticipate the level of demand for the month and stock enough products to avoid delays in meeting demand. If your products are electronic, you don’t have to worry about a lack of product supply.

Step 4: Train members of your organization

Network marketing is a business of people helping people. You cannot be successful if your downlines are not successful. So it’s important to make sure your downlines are as good or better than you. A newcomer to the network marketing industry will usually face obstacles in its early stages and it is vital that they are mentored to get through this initial stage.

Important knowledge such as network marketing know-how, sales techniques, communication skills, and the art of speaking are all important to a network marketer. A newcomer would not be able to gain the necessary skill set to be successful in the shortest amount of time without a mentor to support them.

Therefore, it is important that you, as an upline, pass on as many of the skills and techniques that have made you successful to your downlines. This process is called duplication. In reality, you are creating more “you” to increase your earning potential. A superstar salesperson can earn $6k a month, doubling this superstar salesperson will double the monthly income to $12k and so on.

Training should be progressive and consistent. The bottom line is to prepare each of your downlines to become the future leaders of your organization, so you can enjoy financial freedom by earning a great passive income when your organization is put on “autopilot.” In addition, it is also important to update so that the entire organization learns and improves together.

All in all, network marketing works on relationships and is a people business. It is important to learn how to help others in this business. Now that you have a general idea on how to start your own network marketing business.

It’s time to take action! As Brian Tracy has said, “Setting goals and having ambitions and dreams is nothing without action.”

So get started today and take another step towards financial freedom!