Learning the skills necessary to have a good home based business, in my opinion, starts with internet marketing. If you master a few key skills, you’ll never be without income as long as you have a computer and an internet connection. But what is IM really and what are the issues to consider?
First of all, what is internet marketing? Wikipedia definition: Internet marketing, also referred to as i-marketing, web marketing, online marketing, or eMarketing, is the marketing of products, or, services over the Internet. Simple enough, but is it that simple?
What type of internet marketing do you plan to do? MLM (multilevel marketing), affiliate marketing and two level direct marketing are examples of the three most common types. My choice for my own internet home based business among the three is two level direct marketing. I’ve determined three reasons for this choice: flexibility, coaching and compensation.
While MLM is simple to understand, the company rules are often rigid regarding how you can promote their products. Amway Global, for example, will not give you lattitude in your online marketing. You simply can’t put your skills to work…they want you to remain in a traditional face to face environment to market yourself. Sure, they have a wonderful online presence, but they offer little marketing flexibility on the web.
Affiliate marketing may be overly flexible. You are truly a gunslinger here but the traditional skills of loyalty, organization building, etc. are not really stressed nor compensated well for those that have the talent. Thus, the result is too much flexibility and not enough focus on residual income. It’s a long hard road to learn the ropes without someone really compensated to help you when you need the help.
The most overlooked key ingredient in IM is training (notwithstanding the 200 level IQs out there…). In most MLMs, members are trained in groups. We know that we learn most effectively in a one-on-one setting. In order for that to occur a system has to be designed to compensate its members well for helping downline members hone their IM skills. Two level direct marketing does this best. Teach a man to fish….
We just touched on the shortfalls of affiliate marketing regarding training. Companies don’t spend enough time developing their online presence to help the newbie. You get your helpful information in the forums and that may not be enough for the neophite. There are companies that are agressively increasing their focus on training because of rising competition.
Finally, a bit about compensation. This should be the deciding factor. How are you compensated in an MLM and on what product pricing? In traditional MLMs the juices, lotions and potions are not priced effectively to bring high commissions unless a large organization is built to support it. For most, it simply takes to long to develop these organizations and the time just runs out as the motivation wanes.
Regarding an affiliate marketing network, only the gunslingers survive. With the increased competition in the industry, the CPA (cost per action) opportunites have decreased in some markets. To survive, you must find the offers that pay the most to stay ahead of your PPC (pay per click) dollars. PPC profit rules here.
This brings me to the final method: two level direct marketing. Regarding flexibility, you have many marketing methods to evaluate and use if you want. Offline marketing, PPC and free online “sweat equity” strategies are plentiful. You are encouraged to learn them all and use what is the most profitable based on your budget.
Will there be someone there to coach you? If short term front line compensation is paid out, you’ll have a business coach there at your side to steer you in the right direction. If coaching a new IMer in your front line pays you hundreds to thousands if a sale is made tomorrow, you’d be there with answers to the noobie questions wouldn’t you?
As we said before, compensation is such a key factor in determining what you’ll promote with your IM home based business. Find a product that everyone needs that is worth the price, on or off line, and pays a significant commission. But what is significant?
It is the author’s opinion that after 10 years of MLM experience, a $1000 to $7500 per sale commission would suffice. PPC has an expensive entry fee (in terms of experience necessary to consistently turn a profit), offline marketing can cost much time and/or money and online “sweat equity” strategies are time consuming at the least. When you start making sales, you need to make significant commissions to offset the cost of your learning curve.
My conclusion? It’s all fun, but determine whether you have a business or a hobby. If you chose a business then reach for the stars. The top IM’ers are making $100,000 to $200,000 per month! Use the information I just laid out to determine where you want to spend your time and money. I think you’d agree that the right company in a two level direct marketing system has the edge.
John Lee is an IM’er who makes his home in Virginia. He enjoys
family, friends and the art of the IM sale. He has been active with the
opening of the Global Affiliate Network
and is currently building a two level
direct marketing company .
