I often attend networking events, in which a large percent of entrepreneurs work for or represent another company other than themselves.  I did the same thing for many years.  I understand why they do it, but if you think about it, putting all your eggs into one basket can be dangerous, especially now.

In recent years, I have seen many of these companies flatline leaving reps who have worked their butts off stranded. I’ve seen people sign up for companies they have had no intention of promoting only to spend enormous amounts of money to get products at a discount. In the long run, they end up paying much more than they would have at retail.  I’ve seen unscrupulous promoters talk people into business tools they clearly do not need because they get a kick back from them.

Don’t get me wrong.  Many of these companies are fabulous with equally great products.  However, I believe it’s smart to be realistic and optimize your profit potential.  It’s important to separate YOUR true business from the business of that particular company.  In essence, you are an affiliate for the company, because you love the product, The company is the supplier of the products for YOUR business.

If you create the company of YOU, it doesn’t matter if your company folds or not.

You simply replace your product supplier with that of another entity.

You can do that by putting the emphasis on promoting yourself as an expert in your field who recommends products that you truly believe in.  These may include the products of the company you are affiliated with, as well as complementary products from other sources, including those you create yourself.   That way you generate multiple streams of income not dependent on any one source.

I help people set up online businesses through blogging.  A blog is a marketing tool to set yourself apart from others in your field.  It is a destination to send people to that will let them know more about YOU.  It is also a place where visitors will take action. They may buy products, join your mailing list, or become a part of your community in some way. People follow people and not products.  If you are building a team, for example, demonstrate your leadership skills and let prospects know why they should follow you and not someone else.

If only 2% typically reach the top of a network marketing company, for example (or real estate, insurance, etc.) how do you want to monetize and market your business?

Ask yourself these questions:

If you can promote the same product for free (as an affiliate) does it make sense to pay a startup cost to become a distributor? 

Some products are unique and can only be purchased through a network marketing company.  In this case it makes sense.  However, if you can find the same product on Amazon, for example, that you can promote for free, it does not make the sense to put out startup cash or monthly autoship.

As an example, I was temporarily signed up for a company that sold an expensive healing product.  The same product was available on other websites at a discounted price.  The distributors of that company were not exclusive and could not compete.

Does the company that will supply your products have longevity and integrity? 

There are many horror stories of infighting among company officials that have led to companies closing their doors and bailing on their distributors.  If you are going to sign up as a distributor of a product, make sure it is rock solid.

Do you actually want to convince people into joining your opportunity or are you more comfortable promoting your product to people who genuinely love it and will benefit from it?

Be real about who should be a distributor and who should be customer.  If someone signs up for more than they are willing to work for, they will become resentful and/or annoyed, eventually.  Any network marketer who wants to move up realizes that success depends on signing up distributors.  There is massive competition out there.  People get turned off if they are constantly solicited using the same time worn scripts.  You may be excited about your company and product, but realize that others may not share in your excitement.  If people see you as an expert in your niche rather than as a marketer, they may be more inclined to become interested in what you have to offer.

Do you enjoy doing in home parties or does the thought of it make you feel weird and uncomfortable? 

Some people are social butterflies and enjoy having people get together in their homes or at other people’s homes.  Other people would rather slit their throats than attempt to get people to host an event.  If doing parties or schlepping products around in your car is not your cup of tea, find another more compatible way to promote yourself.  If your systems are set up properly, this may include online marketing techniques.

Even though most companies have rules about promoting products online and require that you only use a replicated website, there are ways to promote yourself online without compromising company guidelines. It is rare that sales are made on replicated websites because they are generally hard to search for.  Domain names are long and there are thousands of other distributors using the same site.

A blog is a vehicle to offer Google searchers information they are looking for in a particular niche.  Offering tips on how to stay healthy or apply makeup using your unique personality is a great way to attract others that you would not necessarily meet in the outside world.   If you hate writing, insert personal videos, audios, or offer special reports.  First and foremost, encourage people to sign up for your mailing list and then via email, spoon feed information about your products and services.  Do not barrage them with sales solicitations.  The point is to get them to know, like and trust you.

If you need help strategizing and setting up a blog to promote the business of YOU, please visit www.sharpbizimage.com   or call Rebecca direct at 818-515-7880.

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I recently attended a business networking event at the Women’s Business Forum.  They meet at the Woodland Hills Country Club in the San Fernando Valley of Los Angeles. It’s a wonderful and energetic group of women who meet once a month, usually on the 2^nd Friday of the month for breakfast. The best part is no dues!  You just pay for breakfast.  The speaker at our last event was Adam Taylor, who is the President of APM Music. Need licensed music for your video project?  Check them out.

Adam was also past President/CEO of Caswell-Massey (the oldest cosmetic and perfumery in the US, established in 1752; President of Taylor/Fox Enterprises (direct marketing with doctors, scientists, and inventors to deliver patent protected inventions to consumers; and Goldman/Taylor Entertainment (TV series and film production for Lifetime-PBS)

Adam imparted, in a very unassuming and humble way, his 9 Steps to Success, that I felt were well worth sharing.

Get in business for the right reasons and in the right business

What do you want to be remembered for?  Align your choice with who you are as a person.  Do you want $100,000 per year or $1,000,000?  The $1,000,000 may come with additional stress that will take your lifestyle out of alignment.  Balance work with free time.  How will it all fit in to your overall plan?

Set your sights high

Do not operate with a limited view

Thinking with a larger view will improve your lifestyle and eventually make it less stressful.

Do not do anything without a clear strategy

You may come up with great innovations but they are nothing unless they are strategically executed. The bigger your business is, the more important it is to strategically plan.  Adam recommends using the strategy document in the book The Balanced Scorecard: Translating Strategy into Action (See all Management Books) Identify your vision and mission using 4 perspectives:

• Financial
• Customer
• Internal Business Processes
• People

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

A strategy document is different than a business plan in that the strategy document is what you actually execute.

Take yourself and your business seriously and give it your focus

When you focus on one task, rather than many, it brings energy together.  Too many of us, (me included) are off in many different directions rather than focusing our efforts on just one.  When Adam was made President of APM, he was told he was not allowed to pursue other ventures.  At first that was rather alarming to him, but he soon discovered that it was essential.

Doing business is not the same thing as being busy.

Adam described the idea of a Zen Koan

To fill up a bucket put the big rocks in first, then pebbles, sand and water rather than the reverse.  You will be able to fit more in the bucket that way.

Work with people who know more than you do

Don’t be afraid to admit ignorance or take yourself too seriously.

STOP the creative process

The great is the enemy of the good.

When you are constantly in the process of creativity you are exerting more effort with little result.  Move to Re-creation. At some point you need to start to sell your idea.  If you spend too much time perfecting it, you will never make it actually come to fruition.  Adam cited companies such as Microsoft, Facebook, and Apple for the fact that even though their ideas are not perfect (in some cases mediocre) they are highly successful because they executed their plan.  Apple has been highly successful because they work and execute in stages.

Re-creation leads to recreation

Do the research

Ask questions.  Read selected business books.  Adam suggests

The 100 Best Business Books of All Time: What They Say, Why They Matter, and How They Can Help You (See all Business & Investing Reference Books)

(summaries of each book)

The Essential Drucker: The Best of Sixty Years of Peter Drucker’s Essential Writings on Management (Collins Business Essentials) (See all Business & Investing Books)

Learn to lead and Manage

You must have the ability to make good, well thought out decisions.

The secret to failure is trying to please everybody ~ Bill Cosby

Be respectful

Be respectful of your employees, customers, and competition.  Who are you as a person to them?

Feel free to leave a comment and tweet/share this post!

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• Business Models – Create Your Ultimate Lifestyle

Below are 3 small business models with some of the pros and cons of each:

The Storefront business – known as the Mom and Pop Shop

A storefront business requires a brick and mortar location whether it is unique or is a franchise.  It serves the local community.  Unfortunately, many Mom and Pop’s are closing because of high overhead and competition from big box stores.   I always loved going into the neighborhood hardware store, where you were treated as if you were the most important person on earth.  Sadly, a large national chain opened nearby and goodbye neighborhood hardware store.

Storefronts require capital to lease and maintain the building, buy inventory, pay employees, insurance, advertising, etc.

The upside is that once a store is established and becomes beloved by the community, people walk through the door when they are looking for those particular products and services. Your billboard is your building, if you can afford it.

Network Marketing

Network Marketing has been in existence for over 50 years.  It is sort of a business in a box.  You don’t actually own the business. Instead, you are labeled an independent distributor.  To become a network marketer you sign up to promote an existing product line. Clients either become customers or sign up as distributors under you.  If you are successful, you can earn residual income from customer sales and the work of distributors underneath you.

I have been involved with network marketing for over 10 years. At one point, I rose to the top 2% of distributors for one particular company. The reality of network marketing is that only 2% of all distributors reach that level or above. It is not that there is anything wrong with network marketing, but you have to realize that you must do the work required to make a profit.  Network Marketing does not purport to be a get rich quick scheme. Most people join with big dreams but work their business as a hobby making little if any income. If you are not interested in building up your customer base or your down line, you are essentially working by appointment, like any freelance employee.

The thing to beware of in network marketing is spending more than you make.  When you join you pay an initiation fee that will range from about $50 – $600 or more.  Most network marketing companies want you to pay a monthly auto ship fee to purchase products for yourself.  If you are not using all your products, you may find you have more inventory than you need.

The company I have been involved with suggested that I buy inventory. Note:  I was never pressured to buy it. I do not regret at all that I purchased inventory.  It made selling to my customers much easier.  If they needed something, I gave it to them, much like having a store.  The nature of the type of product it was made having inventory appropriate.

The danger lies when we purchase items we don’t need or add production to earn prizes.  This can seriously run up credit card debt and get you into big trouble if you do not manage your money correctly.   We sometimes get caught up in motivation and leave business sense at the door trying to compete to get to the top.

The more successful network marketing companies offer outstanding training in marketing and customer service that is invaluable.  Some of this training is free.  Most companies have annual seminars that can cost $600 or more for registration, travel, hotels, etc if it does not take place in your local area. This must be factored into your expenses.

Internet Marketing

The beauty of Internet marketing is that you basically just need a computer and Internet service to start earning income.  Even if you don’t have a website, there are many ways to create passive income either from your existing business or from other opportunities.

A blog is a very simple and affordable website to set up, and it can be powerful for creating multiple income streams.  WordPress.org is a free platform that works with thousands of beautiful themes. A well designed Word Press blog rivals static websites that cost thousands of dollars and allows you to have complete control over posting and making changes.

Affiliate marketing is when you refer others to the products and services of others and receive a commission based on what they purchase.  It costs nothing to sign up as an affiliate marketer.  There is very little to no overhead at all.  If you have a blog, you can write product reviews linked to affiliate products that send your readers to product pages that are tracked back to you.  You can also create text widgets that display as image ads. Most affiliate vendors will give you the code to insert into your widget.  If someone clicks on the ad and purchases the product, you get paid by a check, paypal, Clickbank or direct deposit.  If you do not have a blog/website you can refer others to product links via email, facebook, twitter and other social media sites.

The costs

Storefront – You will need to come up with many thousands of dollars for rent, inventory, insurance, salaries, etc.  If your store fails, you risk losing your money.

Network Marketing – You must pay initial and monthly fees, which differs with each company to earn the title of distributor. To earn money, you must find customers and distributors.  To be successful this usually requires face to face interaction, although some people are able to promote via the internet only.  If your business doesn’t work out, you simply quit paying your monthly or yearly fee. If you have inventory left over, you can use it for yourself.

Affiliate Marketing

It does not cost you any money to become an affiliate for someone else.  To earn commissions, you must promote products via email, blogs, websites, or social media.  Costs may include domain – hosting for a blog (under $100 per year) services of a blog designer if you do not set it up yourself (a couple hundred dollars depending on who you get to do it), and an email service (about $20 per month for a paid service)   All you need is a computer and Internet and can work your business sitting on a beach or at a café in Paris.

In addition to affiliate marketing, you can offer courses, tele-seminars, eBooks and physical products of your own.

My mentor for affiliate marketing is Rosalind Gardner, who makes over ½ million a year from the comfort of her own home. Her book, the Super Affiliate Handbook, goes into detail on everything you ever needed to know about affiliate marketing without the hype.  I highly recommend it.

She has a pretty funny take on the network marketing business.  Although you may not agree with it, you have to admit, she makes some valid points. You can watch it by clicking HERE.

Related Posts:

• Building a Business You can Eventually Sell – The New Frontier
• Abundance Comes With Gratitude and Persistence
• What Makes Entrepreneurs Quit Too Soon?
• Stay Real With Your Business Start Up For Greater Success
• Never Get a Real Job – The Reality of a Young Entrepreneur