Network Marketing For Dummies®

 

 

 

 

About the Authors

Zig Ziglar (Dallas, Texas), speaker, author, and authority on high-level performance, is chairman of the Zig Ziglar Corporation, which is committed to helping people more fully utilize their physical, mental, and spiritual resources. Hundreds of companies use his books, tapes, and videos to train their employees. Zig has traveled more than 5 million miles, addressing over 300,000 people every year at the Peter Lowe Success Seminars and at businesses, sales organizations, schools, and church groups. He also reaches countless numbers through television and radio appearances. Zig is the author of 17 books, including 10 best-sellers like Secrets of Closing the Sale, Raising Positive Kids in a Negative World, and See You at the Top, which has sold over 1.7 million copies, and his two most recent books, Success For Dummies and Something Else to Smile About. He also develops and markets training audio- and videocassettes for worldwide distribution. His works have been translated into more than 38 different languages and dialects.

John P. Hayes, Ph.D. (Dallas, Texas), enjoys a multi-faceted career as author, speaker, trainer, and businessman. Network Marketing For Dummies is his 17th book in an impressive list of titles that includes business books and biographies. A “Signature Series Speaker” for Ziglar Training Systems, John speaks to small businesses, entrepreneurs, distributorships, and franchise companies on marketing and strategic planning. He also coaches individuals and companies to help them build more satisfying and profitable businesses. John is a member of the Board of Directors and a marketing advisor for The Dwyer Group, one of the world’s largest franchise companies. He is senior counsel to Bizcom Associates, a Dallas-based public relations firm. You can request a copy of John’s free Special Report: The Network Marketing Checklist, by sending him an e-mail at: info@hayesworldwide.com. Type “NM Checklist” on the subject line. Or visit his Web site at www.drjohnhayes.com.

 

Dedication

Dedicated to those courageous pioneers who brought network marketing to life years ago and created a multibillion-dollar industry that has produced numerous millionaires and opened the doors of opportunity for many thousands of “average,” committed, hard-working men and women.

 

Authors’ Acknowledgments

Writing Network Marketing For Dummies required the time, energy, and cooperation of a network of individuals, and we want to convey our personal thanks and gratitude to each of them. First and foremost, we want to acknowledge the network marketers who contributed their knowledge, expertise, and “heart” to the project. These people are:

Louise Adrian, Party Lite Gifts; Shapira Alexander and David Kohina, Dr. Nona International; Cathy Barber, Pampered Chef; Jimmy and Carol Bishop, Zig Ziglar Network; Jim Bruce, TVC Marketing; Mike Cheves, Zig Ziglar Network; David D’Arcangelo, author; James Davis, Horizons Marketing; Kamie M. Downen, Enviro-Tech International; Connie Dugan, Oxyfresh; Todd Falcone, ProSTEP; Dan Gaub, Market America; Ray Gebauer, Mannatech; John Greene, Pre-Paid Legal; Jennifer Harper, Henn Workshops; Priscilla Harrison, Starlight International; Dan Hollings, i360inc.com; Atticus Killough, AtticusKillough.com; Kim Klaver, MLM911.Com; Lee Lemons, Excel Communications; Melynda Lilly, Discovery Toys; Edward Ludbrook, Direct Sales World.Com; Jack Maitland, Nikken; Dayle Maloney, Nutrition for Life; Nuala McDonald, Kleeneze; Jon Miller, Body Wise International; Luis Mogas and Miguel Ganem, ORBIS; Rod Nichols, USANA; Russ Noland, Excel Communications; Tom Paredes, Nutrition for Life; “Tremendous” Bill Pike, Youngevity; Bill Porter, Zig Ziglar Network; Brett Rademacher, Recruitomatic.com; Fred Raley, Ameriplan USA; Jeff Roberti and Gordon Hester, National Safety Associates; Ken Rudd, Premier Systems, Inc.; Tim Sales, Nu Skin/Big Planet; Tom “Big Al” Schreiter, Nutrition for Life; Bob Schwenkler, Nikken; Gavin Scott, Kleeneze; Kathy Smith, Discovery Toys; Todd Smith, Rexall/Showcase; Arce Trujillo and June Sweetser, Rena Ware International; Vernon Walker, Zig Ziglar Network; Shawn Wheeland, New Image; Mark Yarnell, Legacy; and Colleen Zade, Epicure Selections. Each of these network marketers gave unselfishly of their time to be interviewed for the book. To all of you we extend our admiration for your success.

Two other network marketers endured lengthy interviews and then went out of their way to contribute to the book. Jan Ruhe, Discovery Toys, may know every network marketer of note worldwide! We know she has trained many of them, and those we interviewed showered praises upon her. Jan, consider us members of your fan club! We also are thankful for the devoted assistance of another trainer, Doug Firebaugh, Mlmleadership.com. Doug has produced some of the best products available to network marketers, and he is one of the most knowledgeable resources in all of network marketing. Doug, thanks for contributing so much to this profession.

Other professionals who contributed to the book include Jeffrey A. Babener, Babener & Associates; Travis Bond, vice president of sales and marketing, 2021 Interactive, LLC; Holly Cherico, Better Business Bureau; Bryan Flanagan, Director of Corporate Training, Ziglar Training Systems; Joe and Blake Gecinger, Century Small Business Solutions; N. Ridgely Goldsborough, Network Marketing Lifestyles magazine; Clifton Jolley, Advent Communications; Hilton and Linda Johnson, MLM University; Charles King, University of Illinois; Joseph Mariano, Direct Selling Association; and Kyle Wilson, Jim Rohn & Associates. Don Sherman straightened us out on several compliance issues; he’s vice president of associate relations for the Zig Ziglar Network. Michael Sheffield, Sheffield Resource Network, is a consultant who never tired of our questions or requests; he contributed mightily to our work, even while traveling internationally to meet with his clients.

We greatly appreciate the thoroughness and the energy of our editorial triad at Wiley: Suzanne Snyder, Tina Sims, and Pamela Mourouzis, as well as Maureen Kelly and Ben Nussbaum. Please, ladies (and gent!), no more editorial queries! We could not have managed this project without the help of Zig’s personal editor, Julie Ziglar Norman, and Laurie Magers, his executive assistant for more than 23 years. This dynamic duo flawlessly managed the writing and editing process and bolstered our confidence as we completed the book. Ron Wuerch, who provided his services as technical editor, contributed many good ideas and helped clarify the messages we wanted to get across.

Our gratitude also for Tom Ziglar, Zig’s son and chief executive officer of the Zig Ziglar Network, and Richard Oates, Zig’s son-in-law, and chief operating officer of Zig Ziglar Network, both of whom envisioned this book even before its authors; Bruce Barbour, Zig’s super literary agent and friend to both authors; and Mark Butler, who as acquisitions editor had the confidence (and, might we add, the good judgment) to invest IDG’s time and money in this book. Thank you, all.

Writing a book is an exhilarating experience and an awesome responsibility. Any errors or omissions are entirely ours and in no way reflect on the people who assisted us. When it’s all said and done, we hope you, the reader, will have enjoyed the book as much as we enjoyed writing it for you. Thank you for reading.

Zig Ziglar

John P. Hayes, Ph.D.

 

Publisher’s Acknowledgments

We’re proud of this book; please send us your comments through our Online Registration Form located at www.dummies.com/register

Some of the people who helped bring this book to market include the following:

Acquisitions, Editorial, and Media Development

Project Editor: Suzanne Snyder

Acquisitions Editor: Mark Butler

Copy Editors: Tina Sims, Ben Nussbaum, Maureen Kelly

Acquisitions Coordinator: Lauren Cundiff

Technical Editor: Ron Wuerch — Zig Ziglar Network Founding Associate, Presidential Founder/Silver Director

Editorial Manager: Pam Mourouzis

Editorial Assistant: Carol Strickland

Cover Photo: © FPG International / VCG

Composition

Project Coordinator: Dale White

Layout and Graphics: Amy Adrian, Beth Brooks, Maria Mitchell, Kristin McMullan, Brian Torwelle, Jeremey Unger

Proofreaders: Laura Albert, Andy Hollandbeck, Susan Moritz, Susan Sims

Indexer: Rebecca R. Plunkett

Publishing and Editorial for Consumer Dummies

Diane Graves Steele, Vice President and Publisher, Consumer Dummies

Joyce Pepple, Acquisitions Director, Consumer Dummies

Kristin A. Cocks, Product Development Director, Consumer Dummies

Michael Spring, Vice President and Publisher, Travel

Kelly Regan, Editorial Director, Travel

Publishing for Technology Dummies

Andy Cummings, Vice President and Publisher, Dummies Technology/General User

Composition Services

Gerry Fahey, Vice President of Production Services

Debbie Stailey, Director of Composition Services

Contents

Title

Introduction

What Network Marketing Isn’t

About This Book

Conventions Used in This Book

Foolish Assumptions

How This Book Is Organized

Icons Used in This Book

Where to Go from Here

Part I : Why Network Marketing Works

Chapter 1: Don’t Laugh — $100 Billion a Year Is Serious Business

Getting the Facts about Network Marketing: You May Be Surprised!

Understanding How Network Marketing Works

Understanding Why Network Marketing Works

Choosing Network Marketing as a Career

You Get Out of It What You Put into It

Chapter 2: Coming of Age: The Future Belongs to Network Marketing

Emerging from a Murky Past: Defining Legitimate Network Marketing

Sizing Up the Challenges Ahead

Worrying about Saturation Is a Waste of Time

Defining a New Profession

Chapter 3: Deciding Whether Network Marketing Will Work for You

Success Begins with Desire

Becoming the Right Kind of Person for Network Marketing (Or Anything Else!)

Ways in Which Network Marketing Can Work for You

Understanding the Money Issue

Part II : Finding and Evaluating the Opportunities

Chapter 4: Investigating Before You Invest

Industries That Use Network Marketing: Profitability and Reputability

How to Research Network Marketing Opportunities and Avoid Becoming a Turnover Statistic

Questions to Ask Before You Join a Network Marketing Organization

Chapter 5: Evaluating Network Marketing Companies

Doing the Right Thing by Doing Your Research

Looking Beyond the Logo

Discovering Who Owns the Company

Determining the Company’s Financial Situation

Knowing the Company’s Philosophy

Questions You Should Ask Before Joining a Network Marketing Organization

Chapter 6: Evaluating a Company’s Management Team

Knowing How to Recognize a Good Management Team

Getting to Know the Management Team

Having “Been There, Done That” Is a Good Thing

Calling on the Pros When They’re Needed

Commitment to Employees: Attitude, Ethics, and Quality

Questions to Ask Yourself After Doing Your Research

Chapter 7: Evaluating a Company’s Products and Services

Deciding What You’d Like to Sell

Deciding to Whom You’d Like to Sell

Marketability Issues to Consider

Tracking the Market: Where Did That Market Go?

There’s No Substitute for Quality

How Much Training Is Required to Learn about the Products or Services?

Delivering Products: Is It Your Responsibility?

Questions to Ask a Network Marketing Organization about Products, Services, and Training

Chapter 8: Evaluating Your Opportunity to Make Money

Defining a Compensation Plan

Payday Was Never Like This Before

Recognizing the Major Compensation Plans

Considering Compensation Plans

Seeking a Balanced Compensation Plan

Evaluating Compensation Plans

Questions You Should Ask Before You Join a Network Marketing Organization

Part III : Signing Up and Setting Up for Success

Chapter 9: Organizing Your Business

Network Marketing Is Not a Hobby

Setting Up Your Business

Going into Business with a Partner

Working from Home

Relying on Your Corporate Office for Assistance

Chapter 10: Knowing What to Do After You Sign Up

Preparing Yourself and Your Surroundings for Business

Understanding the Company’s System

Getting the Word Out

“You Can’t Be Serious . . . Can You?”

Chapter 11: Sponsoring, Training, and Motivating People in Your Downline

Three Reasons Why Building a Downline Is Important

Deciding Whom to Recruit for Your Downline

Training Your Distributors to Shine

Motivating Distributors for the Long Term

Part IV : Sales and Marketing Skills to Help You Build Your Business

Chapter 12: Know Thy Customer

Determining Your Most Valuable Asset as a Network Marketer

Creating Customers

Identifying Your Customers

Giving the Best Customers the Best Experience

Chapter 13: Determining a Customer’s Value

Calculating the Cost of Acquiring a Customer

Determining the Value of a Retail Customer

But There’s More: Making Customers Distributors

Determining the Value of a Downline Customer

Chapter 14: The Art of Prospecting

First Things First: Setting Up a Database of Prospects

Making Two Decisions Now

Getting on the Fast Track to Prospecting

Being a Good Ambassador for Your Company

Chapter 15: When the Prospect Says Yes, You Shout . . . “Hallelujah!”

Some People Are Just Waiting to Tell You Yes

Every “No” Is a Step Closer to a “Yes”

Working Your Leads Repetitively

Follow Up Even When You’d Rather Not

Using Technology to Do the Follow-up for You

Asking for Help Is Another Way to Follow Up

Following Up Keeps You from Giving Up

Chapter 16: Deciding On the Best Ways to Attract Customers

Developing Your Personal Marketing Plan

Dipping into Your Bag of Marketing Tools

Getting Face to Face As Soon As You Can

Chapter 17: Marketing Activities 101

Advertising in Newspapers and Magazines

Ring, Ring: Use That Telephone

You’ve Got Direct Mail

Speak Up! Speak Out! Speak Wherever You Can

You’ve Got E-Mail

A Web Site for Every Networker

Chapter 18: “But I Don’t Want to Be a Salesperson!”

Selling: One of the World’s Most Honorable Professions

Selling Is a Process, Not an Event

Understanding Your Role in Sales

Chapter 19: Taking Your Sales Skills to a Higher Level

Understanding Why People Don’t Buy

Focusing on the Customer by Asking Questions

Asking Questions Leads to More Sales

Selling Big Requires More than Being a Good Salesperson

Overcoming Sales Objections

Managing Objections

Going for the Sale

Chapter 20: Creating Satisfied, Loyal Customers

Keeping Customers Equals More Profit

Loyal Customers Require a System

Building Customer Loyalty

Gaining Loyalty by Meeting or Exceeding Customer Expectations

Keeping Customers Loyal

Building Your Business from Referrals

Handling Customer Complaints

Part V : The Part of Tens

Chapter 21: Ten Plus Two Resources for Network Marketers

Network Marketing Lifestyles Magazine

Direct Selling Association

Babener & Associates

mLmSuccess.com

Direct Sales World

Passion Fire International

www.recruitomatic.com

www.mlm911.com

MLM Insider and Network Marketing Today Magazine

MLM Nuts $ Bolts

Performance Tracker

The Wave 3 and Wave 4 Books by Richard Poe

Chapter 22: Ten Characteristics of Top Network Marketers

They’re Dreamers

They Don’t “Try,” They Commit

They’re Teachable

They Have STEAM

They’re Builders

They’re Good Finders

They’re Always Present

They’re Motivated

They’re Persistent and Patient

They Have a Heart Condition

Chapter 23: Ten Business-Enhancing Ideas

Work “on” Your Business, Not “in” It

Organize a Business Mastermind

Feed Your Mind Continually

Don’t React to Life; Respond!

Celebrate Your Victories

Don’t Take Defeat Personally

Look for Opportunities to Help Others

Practice Your Affirmations Daily

Maintain a Balanced Life

Make Success a Habit

Chapter 24: Ten Questions That You’ll Probably Ask about Network Marketing

Do I Need a Lot of Capital to Become a Network Marketer?

Do I Need to Buy Products or Services Every Month?

Will I Need to Store Products and Then Deliver Them to My Customers?

Do I Have to Work Full-Time to Make Money?

This Is Just Another Get-Rich-Quick Scheme, Right?

Network Marketing Isn’t a Real Business, Is It?

Is Network Marketing the Same as Multi-Level Marketing?

How Often Do I Have to Attend Meetings?

If My Spouse Isn’t Involved in the Business, Is That a Problem?

If Network Marketing Is a Global Phenomenon, How Come I Rarely Hear About It in the Media?

Chapter 25: Ten Ways to Get a Quick Start in Network Marketing

Find a Good Company and Join It

Get Involved with the Intent to Succeed

Be Selective about Your Upline

As Soon as Your Kit Arrives, Contact Your Sponsor

Learn One Good Lead-Generating Technique and Use It

Learn How to Make Your Presentation

Make Your First Real Presentation with Your Sponsor’s Support

Commit to Share Your Business with Three or More People Daily

Attend All the Meetings You Can

Always Continue Learning So That You Can Improve Your Skills

Appendix: Glossary of Terms

: ZigOnline

ZigOnline — A Life-Changing Experience: Use It to Get Answers; Use It to Build a Global Business from Your Home!