Have you ever struggled when a prospect asks you “what is network marketing”? The concept of MLM and network marketing seems simple enough, but sometime it is hard to come up with just the right words to explain it effectively.Here is a story you can use to illustrate the concept in a way that everyone can understand. You might consider making a version of this in your own words, and memorize it so you can explain how your business works at any time.
Let’s say there are two “Superstores” in your community. Superstore #1 is where most people go. They offer a “Shoppers Card” for filling out a short form, and you can save a few dollars on each trip by presenting the card. Superstore #1 buys a lot of expensive advertising on television and in newspapers to promote their savings.
Superstore #2 across town decides they want to attract more business. They know that word of mouth is the best advertising there is. So, Superstore #2 starts a frequent shopper program that gives you a discount of 15-20% on everything you purchase. That’s a good bit more discount than any other store around offers, so you will be anxious to tell your friends and neighbors about it. “Hey Joe, go check out the frequent shopper program at Superstore #2, you can save up to 20% on everything you buy!”
Now, to build up even more business, Superstore #2 also gives you a commission on purchases made by people you refer to the frequent shopper program. On top of that, when the people you refer start referring people, you will get a percentage of all THEIR purchases as well. It’s a small commission, but it adds up fast. This is beginning to get pretty exciting, isn’t it?
Pretty soon, just by telling everyone about Superstore #2, you will be getting enough commission to pay for all your own purchases. The more people you refer, the more you will make. You could easily end up with a significant income just from telling people to sign up for the frequent shopper program at Superstore #2.
This is essentially how network marketing works. You spread the word, telling people about your products, and the opportunity to make money telling others about them.
Here is another, shorter explanation that I use. Again, put this in your own words and memorize it for a quick explanation.
Network marketing is all about using your products, and building a team of associates who also use the products and tell others about them. You get paid for the products that are purchased and sold throughout your team. The money normally spent on advertising is paid to you and me because we are doing the advertising.
