“How can I get a hold on my marketing efforts so I can increase my client base?”  This is the question I got from one of my distributors recently.  As we talked a little more about the issues he was facing, marketing wasn’t where he needed help initially.  He needed help with being clear about what business he is in and who would pay for the MLM products he offered.  We also found that his Business Foundation wasn’t solid enough to support the goals of his business; therefore his marketing efforts were not efficient.

After working with him to build a solid foundation, he was able to create a solid marketing plan and increased his MLM prospect base immediately. 

I’m sharing this story with you because 80% of business is marketing.  If you think about it, most activites that we do in our MLM business are focused on getting new business in one form or another–your target market is the CORE of marketing.  If you don’t have customers you don’t have a business.  Since marketing is such a critical ingredient for business, one must understand business to understand marketing.

When you understand business your marketing efforts will be effortless.  To understand business I’ve listed the 10 Basic MLM Business Principles that a small business owner should know and understand.  It will help give you clarity in your business so that you will have clarity in your marketing.

Principle One–Why are you in business?
Your answer should be to make money.  Having a passion or doing what you love is wonderful; just make sure it’s a profitable business.  And you should also have a clear WHY for the money you plan to make or you’ll never see it.

Principle Two–What business are you in?
For example: If you sell services.  Are you a manufacturer, distributor, or retailer?  Understand what business you’re in so that you can make better business decisions.

Principle Three–What is the purpose of your business?
The purpose of business is to drive the economy and provide your security.

Principle Four–Understand what makes up business. 
The sum of any business includes people, services, products, equipment, suppliers, customers, job tools, capital, and facilities.  Knowing the make up of business will help you manage processes and set goals.

Principle Five–Understand the key functions of business.
The key functions of business refer to the internal operations of business.  They include:  accounting, distribution, marketing, sales, and management.  All businesses have at least 3 of these functions.  Make sure you know what functions are needed for your business.

Principle Six–The Business Lifecycle
There are 5 stages in the business lifecycle:  pre-launch, launch, ramp up or growth, peak, and decline.  Which stage are you in?  Each stage requires different activities within each business function.

Principle Seven–Understand business process and mapping.
This involves mapping out processes and procedures for standard business activities.  Develop a calendar of your activities no matter the size of your business.

Principle Eight–Activities = Money
Concentrate on those activities that bring you closer to the money. 

Principle Nine–Understand consumer behavior. 
Do you know what motivates people to buy?  Do you know what motivates people to buy from you?  If not, you have a lot of research to do.

Principle Ten–Your business is a Profit-Producing Investment.
Think of your business as an investment.  Just like investing $300 a month in a savings account to yield a certain % per year.  How much are you investing in your business a year and what returns are you getting on that investment?
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It’s OK to know the 10 basic business principles, but when you understand them you will be able to take action.

Understand Business to Understand Marketing.

Tags: distributors, Lifecycle, mapping, MLM business, MLM Multi Level Network Marketing business, MLM product, MLM prospect, Network Marketing, Principle

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