They say it takes money to make money. Should
I try to get a small business loan for my start-up
capital or just try to get by with my own limited
finances?
HB: I’m not a big believer
in getting hooked up with the banks or government.
Use them for certain things, but don’t rely
on them for money. They are not entrepreneurs
and have little, if any business experience. You’re
better off getting your seed money from family
or friends. If you’re joining an network
marketing company, it shouldn’t cost you
that much to get started anyway.
KB: I would recommend that you have
some working capital. If you are worrying where
your rent money is going to come from, you will
be desperate and focused on problem solving, rather
than creating and building a lasting business.
AH: That depends on how much money
you have to work with. Even though network marketing
is a home-based business that takes very little
in startup capital and overhead costs, it really
does take money to make money. If you have $2,000
to $3,000, you should be OK. This is not to say
that you can’t get started for less, because
you can. But with fewer tools and know-how at
your disposal, it may take you a bit longer to
get going.
DL: I personally know more than
20 network marketing millionaires who started
so broke and hungry their ribs were sticking out
of their clothes! The secret is REINVESTING your
profits into growing the business. You can accomplish
a lot more with “sweat equity” than
trying to buy yourself a big business. Too many
entrepreneurs are afraid to leave the house, to
go out, and to make things happen.
J&GW: Avoid debt at all costs.
If this means it takes you a bit longer to grow,
it will be a small price to pay down the road.
Debt is entrapment and can curtail your independence.
You will be accountable to the person from whom
you borrowed the money, and his or her ideas about
running the business may clash with yours.
Of the technology that you
use, rank the top three.
HB: The Internet, because you can
reach a global market very inexpensively; all
the programs, Websites, autoresponders, etc. allow
you compete with the big boys. The telephone is
also indispensable to business, especially if
you have a downline and are prospecting; communication
and information are king. Fax machines allow you
to get your message or information into someone’s
hands instantly. It is tactile; you can touch
a paper, and I’ve found that people usually
read a fax document. They don’t always read
e-mail.
KB: E-mail, cell phone, and voice
mail. E-mail is a very efficient way of keeping
in touch with clients and potential clients and
building relationships; the cell phone lets me
be mobile while still being in touch; voice mail
shows everyone that I treat my business like a
business and indicates what they can expect of
me in terms of communications.
CC: The Internet, because it levels
the playing field for the ordinary person like
no other tool in the history of the world; DSL,
because it makes the Internet so much more enjoyable
and useful; autoresponders, because the fortune
is always in the follow up!
AH: First, bulk e-mail broadcasting
to opt-in leads. This allows me to reach thousands
of people every month at a low cost. This is the
kind of “massive marketing” that is
needed if you really want to make a multiple six-figure-a-year
income. Second, ProCall, a system to automatically
call my fresh leads and deposit a 30-second message
on their answering machines. Third, a voice-mail
hotline/fax-on-demand/autoresponder service. After
I have peaked the prospects’ interest with
either my ProCall phone message, my bulk e-mail
messages, or my direct-mail postcard, I need to
direct them to get further information. The 24-hour
hotline simply tells them all about the opportunity,
the company, what is in it for them, and why they
should work with me. The 24-hour fax-on-demand
provides them with all the written documentation
about my company and opportunity, along with an
application to get started. The Internet-based
autoresponder distributes information about my
opportunity, just like a fax-on-demand service
would, but this is Internet based.
DL: My e-mail list of subscribers
(31,000 and growing!), a fax machine, and Instant
Messaging. SPEED of communication, plus REACH
is critical. I can influence thousands of people
instantly, accelerating the disbursement of information.
J&GW: Since our business is
conducted online, we would not be in business
without the computer and e-mail. The Internet
has opened up vast new possibilities for people
who want to be in business for themselves.
Rank the following traits
in order of their importance in building a successful
network marketing business: enthusiasm, persistence,
knowledge, and communication skills.
HB: Persistence is definitely number
one in my book. Someone new to this business may
not have any of the other traits, but they can
be acquired in time. Enthusiasm, knowledge, and
communication skills will come by being persistent
and doing.
CC: Persistance and enthusiasm would
be linked, but you have to have that burning desire
first. Lack of knowledge and communication skills
can be overcome by anyone, but without enthusiasm
and persistence, it’s going to be a more
difficult road, although certainly not impossible.
AH: Enthusiasm-first and foremost-is
the most important. The Greek root of this word:
“enthu” literally means the “the
God within” and “iasm” stands for
“I am sold myself”. If you don’t
have this, then the other character traits will
not matter, for your lack of conviction will come
through every time. Persistence is the key to
ALL success; you can be terrible in all other
areas, but if you have enthusiasm and persistence,
you WILL succeed, no matter what. Once you have
developed the other two traits mentioned above,
then having the ability to communicate effectively
is important. While product knowledge is important,
this would be on the bottom of the list in terms
of priority. I’ve known many, many people
who have achieved tremendous success based on
enthusiasm and persistence alone!
DL: Enthusiasm-I have seen 19-year-old
college girls out-recruit bank presidents simply
because they were fired up about the business!
Persistence-network marketing is so mentally and
emotionally taxing your first three to five years;
if you quit, its back to the 40-year plan, so
hang in there! Communication-I have seen chronic
lispers, people with speech impediments, and English-as-a-second-language
immigrants become wealthy in network marketing
because they understood that communication is
75 percent non-verbal.
J&GW: Persistence, persistence,
persistence. Then, enthusiasm, communication skills,
and knowledge. Jan and I are constantly telling
folks to be consistent and persistent, but it
is a whole lot easier when you are enthusiastic.
Belief in what you are doing leads to enthusiasm,
and this just naturally tends to lead you to be
consistently persistent. Knowledge is not as important
in an Internet-based business because most of
this can be provided by good Websites. Communication
skills become more important as your business
is succeeding. I have a ball communicating with
folks, and then my enthusiasm makes up for communication
skills. When you are talking to your folks, it
isn’t the business they need to talk about.
Sometimes they need to talk to someone, and it
is important that you learn to be alert to their
needs. You can’t do that unless your heart
is in the right place. I so well remember a little
short round man named Dexter Yager, the greatest
Legend in network marketing, patting his hip pocket
and saying, “You ain’t gonna get it
here till you (and he would touch his heart) get
it here.”
