How to Earn Money by Networking (25 Best Ways & Tips)

It’s not that hard to earn money by networking, if you know what needs to be known.

Thankfully you are reading this article and it contains very powerful tips to help you earn money networking.

 

Importance

Back in the 1960s long before the advent of camera doorbells, Bluetooth doorbells, and other assorted featured doorbells and different chimes was the familiar dingdong of announcing someone at the front door.

One of the famous commercials during this time was a well-dressed lady who stood at a front door, pushed the button on the doorbell, and the familiar dingdong was heard along with the announcement “Avon calling.”

The popular cosmetic industry of Avon along with another popular door-to-door sales opportunity of network marketing was Amway.

These two companies still exist today and have survived the modernization of marketing products, shopping on the Internet, and misunderstandings as it relates to their business model.

Network marketing is a legitimate business model that has sometimes been compared to a pyramid scheme, but the reality is that there is a product provided to the customers which meet the definition of regulation regulatory federal standards.

Let us, therefore, ring the doorbell and have the door open to network marketing opportunities of today and how to make money using this business model.

 

25 Best Ways & Tips to Help You Earn Money by Networking

 

1. Know all about Networking Marketing

Network marketing is a business model that utilizes a network system comprised of several distributors to sell a product and ultimately provide business revenue.

The basic strategy of network marketing to create revenue includes:

• Generating leads
• Recruiting
• Management and building

 

2. Know about Single-Tier Network Marketing

The basic network marketing strategy is through the use of one individual or also known as single-tier.

With this system, an individual is recruited and becomes part of an affiliate program to sell the products or present the services that are for sale.

With the single-tier system, the individual that is recruited does not need to bring others on as part of the distribution and selling process.

With the single-tier system, any payments that you receive comes from your direct sales.

Avon is a prime example of the single-tier networking marketing process.

 

3. Know about Two-Tier Network Marketing

The two-tier network marketing system does incorporate the component of recruiting.

However, your payment is not solely dependent upon whether you are successful in bringing others into the network.

With the two-tier system, you get paid for direct sales or any traffic that is referred or made by affiliates or distributors that you have worked with and have come on board due to your direct contact.

 

4. Know about Multi-Level Marketing

The multi-tier or level network marketing process contains two or more tiers and not only is pay received by your direct sales but also pay is realized with your successful recruiting of other individuals.

Amway is a good model to understand as it relates to multi-level marketing.

 

5. Business Model

When considering earning money by network marketing the core or basic success of your endeavor will be the recruitment of a competent marketing team.

In other words, the stronger your marketing team the stronger will be the efforts produced and the possibility of strong profits.

As part of your business model, it is also important that the driving force of your sales team is not just strictly money.

If this is the prime motivation there may be the temptation to cut corners or mislead others as it relates to promises made about the product or the service.

One additional suggestion or tip is to check with your state of residency to ensure that the business model that you are considering is in full compliance as it relates to state law and regulation.

 

6. Right Company

One of the key steps or strategies in earning money through network marketing is to enjoy and believe in the product that you are selling.

It is hard to be sincere and effective when selling a product that you don’t believe in and offer this product to others.

It is important to align yourself with a company that you believe in.

That alignment should not only be in the company’s vision and mission statement but the product that they provide.

 

7. Courses

To be successful in earning money through network marketing it is important to have quality sales training and know how to market a product.

A good strategy to increase your earnings with a networking marketing company is to make as many sales and marketing courses as you can.

 

8. Join the Chamber Of Commerce

One of the key elements in earning money through network marketing is to engage with other individuals.

A way that you can connect with other businesses and leaders in the community is by joining various organizations.

One of the main organizations within your city would be the Chamber of Commerce which is a business member of local business leaders with the intent of promoting their business as well as the business climate within the city.

 

9. Join Service Clubs

Another important group of associations in which you can network and connect with potential customers is by joining service clubs.

Some of these service clubs include:

• Kiwanis
• Rotary
• Lions
• Soroptomists

The members of these service clubs are business leaders who are committed to serving the community in which they live.

In addition to being part of that service to the community, you will also have opportunities to network with individuals and the possibility of promoting your product.

 

10. Elevator Speech

An elevator speech is a short synopsis that you have prepared in advance when you get the opportunity if asked the question what do you do?

The intent and design of an elevator speech are to give an account of what you do, how it affects the lives of others, and how it can improve the individual’s life all within a period to go from one level in a building to another in an elevator.

The speech should be practiced and honed so that it can be given in that time with it being clear and concise to the individual hearing what you have to say.

 

11. Work the Room

When you go to an event that could be classified as a mixer, get together at various business functions, and other types of gatherings that are related to the business, it is important to be outgoing as much as possible.

You do not want to be overbearing or give the impression that you are selling a product but you certainly want to be out going to the point where you are meeting other people and exchanging business ideas, what you do, and exchanging contact information.

This is called working the room and it is a low-key but effective process of reaching out to others.

 

12. Join Boards

Another important area in which you can be involved and meet potential customers and also be involved in other organizations is to be a member of a board.

Many charitable causes have advisory boards or boards of directors in which the individual serves the charity and the community in which they live by providing their expertise.

 

13. Volunteer with Charities

Volunteering with a charity is a great way of being of service to others.

By volunteering with a charity you will also have the opportunity to work with other volunteers and in the process be provided opportunities to expand your network.

 

14. Not a Pyramid Scheme

The big concern expressed about network marketing is that some are concerned that it may be a pyramid scheme.

A pyramid scheme is defined as a business model that gathers together individuals with the enticement of payments or services if they enroll others in part of the scheme.

The big difference between network marketing and a pyramid scheme, according to the Federal Trade Commission, is that network marketing companies are legitimate in that they promote and sell a product rather than just a promise.

 

Revenue Opportunities

 

15. Sales of Products

The primary way of making money through network marketing is through the sales of actual products or services that are provided.

When eight individual starts with network marketing this makes up the bulk of the money that they earned.

 

16. Commissions

Another way to make money through network marketing is through commissions.

Once the distributors within the marketing company begin to expand their network and bring other individuals on as part of the team the opportunity for additional sales increases.

This increase provides the opportunity for additional commissions.

A commission is a percentage that is provided to the salesperson when individuals make sales of the products or in the selling of the service.

It stands to reason that the bigger your team the more money you will earn.

 

17. LinkedIn

A resource or venue in which you can expand your network is LinkedIn.

Strategies of utilizing this site to expand the network could be the spare moments that you take in writing a recommendation based on your business relationship or if you have not met them invite them for a visit over a cup of coffee.

 

18. In-Person Networking

Another option for expanding your network and increasing your revenue is through in-person networking.

The strategy would include engaging people with who you know and are in your immediate circle of influence.

Then expand that circle of influence into other personal interactions that you have with individuals.

Examples of those personal interactions could be in your neighborhood, your place of working out, etc.

 

19. Know Your Market

In strategizing to increase your network marketing prospects it is important to utilize the laser approach rather than the shotgun approach.

This means that you should be more focused and know who you’re selling to as well as the individuals you are trying to recruit.

 

20. Be Consistent

Another important strategy to commit to when involved in network marketing is consistency.

In other words, this opportunity should be approached just like any other job, to provide that provides a steady income.

It is necessary to devote the necessary time to be successful.

A good way of staying consistent and motivated is to determine what your goals are and keep those goals in mind day-to-day as you work.

As part of your consistency, it is also good business sense to respond to calls and emails within 24 hours.

Also See: Jobs That Pay Over $500k a Year & Jobs That Pay Over 300k.

 

21. Advertise

You can have the greatest product in the world but if people don’t know about the product then it is going to be difficult in getting that product into the hands of your customers and realize a sale.

Therefore, it is important to consider your advertising strategy which can include

• Utilizing a website
• Staying active with social media platforms
• Utilizing word-of-mouth,
• Attending meet and greet sessions
• Etc.

 

22. Recruit

As part of network marketing, it is important to attract recruits to offer them a business opportunity as well as gain revenue for yourself.

The recruitment can be similar to other organizations or the military in that incentives are offered if they choose to be part of the network.

Some of the incentives could include:

• Recognition
• Products
• Potential travel
• Monetary reports

It is important not to promise the moon when you can only deliver something less than that.

Therefore, keep your incentives realistic and keep within your budget and resources.

 

23. Invest

As part of the network marketing business that you join there may be associated costs.

Those associated costs, if you are truly engaged in pursuing this line of business, should be considered as an investment.

If the investment required is more than you can handle financially it may be a good idea to think everything through so that you don’t overextend yourself financially.

 

24. Unsold Inventory

An important question to ask the network marketing business is that if you have extra inventory does the company have a policy about purchasing back that excess inventory.

It is critical to read the small print and be familiar with the entire contractual agreement so that you are not blindsided or cannot express that you didn’t know when certain things happen.

 

25. Be Realistic

It is also important to be realistic.

You may be the world’s greatest salesperson, believe in the product, and believe that you can be the outstanding salesperson of the year.

All of this may be true but it is still important to temper these lofty ideals and goals with a dose of realism.

It is important to manage your expectations and work within the parameters of reality.

 

Personal Story

I bought a vacuum cleaner the other day from a vacuum salesperson who knocked on my door and provided an offer that I couldn’t refuse.

Little did I realize that when I opened the door various surprises awaited me.

First of all, we live in a gated community, and I was surprised that he had gained entrance.

Secondly, I didn’t know door-to-door salespeople existed anymore especially as it relates to selling vacuum cleaners.

Thirdly, I always prided myself on being a salesperson resistant and being able to say no but I was caught in a vulnerable moment and ended up being over $1000 poorer.

In retrospect, it was not the product that sold me and moved me to purchase but it was the person and how he made the connection with me and my ailing wife.

The old axiom of people giving to people was on full display in our living room that day.

 

How to Make Money by Networking FAQs

 

What are the questions that I should have answered as it relates to working with a company in the network marketing sector?

Some of the questions that you should ask include:

• How long has the company been a business?
• The character of the leaders?
• Are the products or Services provided of interest to you?
• What training is offered?

 

What Are Some Red Flags About Network Marketing?

Some of the red flags would include:

• Lack of a product
• Too good to be true product claims
• High-pressure sales
• Pressure to buy and stock inventory
• Lack of communication within the company

 

You Can Do It

Network marketing is an opportunity to earn money.

As with anything else, it is important to do one’s research and determine whether this business model is for you and to thoroughly investigate the company as well.

If you are satisfied with your research and enjoy sales then this may be the opportunity for you to take advantage of to earn money.

 

Conclusion

Network marketing, for the most part, is a legitimate business model and enterprise.

It may not be everyone’s idea of a job to be engaged with but the good news is that we are all different and come with a variety of different skills and talents.