Network marketing is a unique opportunity that has the potential to change your life. It’s also a very crowded space, so it’s hard to stand out from the crowd and grow your business. 

The good news is that by avoiding these five common mistakes, you’ll be able to build a sustainable network marketing business (and avoid being one of those people who quit after just a few weeks).

What is network marketing?

Network marketing is a business model that allows individuals to sell a product or service to other people and receive compensation for the sale. In network marketing, compensation is based on your sales and those of the distributors below you.

The multi-level component of network marketing makes it possible for companies to distribute their products with very little capital investment in selling facilities and equipment. It allows these companies to pay commissions based on performance rather than just commissions based on recruitment alone (like MLM).

What are the benefits of network marketing?

If you have never been involved in network marketing before, here are some reasons this type of business opportunity might appeal to you:

     1. Small Amount Of Risk

You are not risking much. You don’t have to buy inventory or hire employees, pay rent, lease an office, buy trucks and gas, or insure them. 

Also, you won’t have any office supplies to purchase either. Your only costs are the time you spend promoting the business.

     2. There Is An Enormous Demand For Permanent Quality Products And Services.

People demand higher quality products and services as the world changes and improves. This is great for network marketers because they have access to some of the best products on the market.

     3. Residual Income

Residual income is the lifeblood of most network marketing companies. It keeps your business running and growing after you put in your time and energy. 

Residual income is the money you earn from a business activity after you have put in your time and energy. You can think of it as passive income because, once it’s set up properly, it will keep bringing in revenue with no further effort on your part other than doing things that keep the business going strong.

     4. The Income Potential

The potential is unlimited. If you can recruit, train, and develop a team of people who will be as successful as you, your income potential will be limitless. 

How many people can you sponsor? How many people can your team sponsor? The sky’s the limit.

     5. Low Operating Costs

When you’re starting out, the last thing you want to worry about is managing inventory or hiring employees. The great thing about network marketing is that you can get started with what you have—your wits, phone, and guts to succeed. 

There is no need to rent office space or advertise since you will mostly conduct your business online. Also, network marketers can run their businesses from home without incurring additional costs associated with travel or transportation.

There are also virtually no operating costs directly related to running your business, like website hosting fees, accounting fees, and printing expenses.

     6. Leverage

Leverage is the power that you have to work smarter, not harder. It is the ability to use assets and resources that enhance your personal power or ability to produce results. Leverage can help you do more with less time and effort.

In network marketing, leverage allows you to increase profits by having other people work with you. By leveraging other people’s time, you can magnify your efforts to achieve your goals faster and better than if you were working alone.

     7. Portability

Portability is the ability to move your business and your business structure to another state or country. If you are in a small business and move to another state, you might have to start up again. 

If you are in a network marketing business, you can move your business to another state or country as long as you have products that are legal where you go.

     8. The Attainable Freedom

Network marketing is the way to go if you’re looking for a business opportunity that offers freedom. Network marketing allows you to be your own boss and set your own hours. It also gives you the freedom to work from home or anywhere else you want.

There are no limits to what type of work you can do as long as it’s legal and ethical. This means no restrictions on how much time or effort it takes for success. 

So, whether you want to keep a 9-5 job but still maintain some level of income on the side, network marketing has all these options available for people with no limitations.

Network marketing mistakes

There are many ways to make mistakes in network marketing, but here are the five most common.

     1. They approach their contact list with the intention of sponsoring everyone.

That you already have a network of people around you is a privilege, and you should treat it as such. Your contacts are not just an opportunity to recruit new distributors but also to build valuable relationships with people who care about your success.

     2. They’re pushy, annoying, or otherwise bothersome in their approach to prospects.

Don’t force the issue if someone doesn’t want to talk to you about your business opportunities. 

Instead of being pushy, be friendly and helpful when talking about anything related (or not) to what your company does—and people will get curious enough to seek more information on their own terms later on down the road.

     3. They only talk to close friends and family.

It’s important to remember that you don’t have to know or like the person you are talking to. In fact, it can be easier when they aren’t someone that you know well. 

When talking with family and friends, they tend to hold back on their opinions because they might not want to offend you. They may agree just so that the conversation ends quickly or even because they are just too nice.

When speaking with strangers, however, this isn’t as much of an issue as long as you stay professional and polite. A stranger will almost always give their honest opinion if asked politely, even if it isn’t positive.

This is especially true if someone knows nothing about your company yet—which means any negative feedback is likely still helpful information for improving future conversations.

     4. They prejudge their prospects and talk to only those they think will be interested.

You should also keep in mind that you shouldn’t prejudge your prospects. Don’t be afraid to approach someone you think won’t be interested. 

Also, don’t limit yourself to talking to only those who seem already on board with the idea of network marketing. You’ll never know how many people would love what you have until you ask them.

     5. They approach every prospect the same way.

Another mistake many network marketers make is approaching every prospect the same way. Network marketing isn’t about selling a product; it’s about building relationships with people and helping them solve their problems. 

You will not get very far with your efforts if you approach every prospect as if they are a cold call.

If you want to sell anything online (not just network marketing), you must understand who your prospects are and what they need from your product or service. This means knowing their pain points and how your products can meet their needs in a way that makes sense for them, not just because it sounds like something everyone wants.