Develop a referral program. Just like in other businesses, people who are referred by others are easier to convert to a sale than people who weren't, because they're usually coming to you with some interest in buying. Many people you talk to won't be interested in buying right away, but they might know people who are. Happy customers may want to share your product or business. You can develop a referral program to give people incentive to refer others to you. For example, you can give them a 10 percent discount on their next purchase for every new customer they refer.
I enjoyed this post and spent too many hours reading all your other posts and watching your videos. You have some excellent real life experiences to share and glad I found this blog. My wife and I are with It Works Global (She started it and I came on board later). I was curious why they didn’t make your list? Do you think blogging would work with this type MLM? I have only had success using Instagram and Facebook. The MLM model is not something I like but it is what is I guess. My wife joined to get a discount on wraps and now this insane looking chart pays the bills. I want to take it further just keep searching for a good way to do so. Maybe blogging is the answer? Thank you. for your time. Mike
And the reason is LEVERAGE… or being able to manipulate other people’s effort and time for your own gain. With MLM, the same principle applies. Everyone has the opportunity to become their own boss and has the opportunity to leverage their time and effort to an infinite extent of people down the line, while giving the opportunity for everyone to make money.
I totally agree, Mary. You can lose soooo much more just by opening up a small storefront business. I was in the Spa Industry and then the economy tanked in late 2008. I did not renew my lease in 2009. Lost my several hundred thousand dollar build-out. Lost so much more than taking an MLM business seriously. Even if I would have front loaded on a ton of product, I still would have been better off. People spend $750 and get some business cards then do nothing and blame MLM.
I thought That your article was very good. My wife recently joined this company called World Ventures and me being me I figured it would be like some of the other companies that she has joined. You know a bunch of women companies scentsy, 31, etc but the reason I took notice is when she made 500. I know it’s not much but i know if she can make that faster than she has with some of the others she has joined without my help then maybe this thing is the real deal. What do you know about it? I have met some of the people and they seem genuine unlike some of these others like Amway and I don’t feel like it’s all about freaking selling like most of the others. Just shoot it to me straight.
7. Ads in local newspapers. Classified ads can pull many leads if handled properly, and weekly newspapers are usually inexpensive. You can use this method to drive people to your Web site as well. But be careful with your investment here. Getting leads is easy. Converting them into productive parts of your organization is hard work, but it's a strategy that will get results as you improve your cold sponsoring and training skills.
If you recruit a distributor who advances to the final step and breaks away from your group, what happens to your commissions? Yes, your total group volume will take a hit, because you’ve lost one of your best recruits. However, most companies will provide you with a bonus commission, referred to as an override commission, for creating breakaway legs (or recruits that end up breaking away, forming their own group).
The kinds of leads that you are likely to get for free are ones that have been gathered in a scatterspray way – they could be poorly targeted, or in some cases even people who have not opted in at all. If you contact leads like this, then you will be putting your brand at risk, because you could end up in trouble with your web hosting provider, or the law, for unsolicited marketing. Alternatively, you could end up contacting people who might otherwise have converted, but who come to view your brand as a spammer because of the way the initial contact was made.
As with any business venture, it’s important to manage your expectations when signing on with an MLM. Marketing materials may sell you the idea of making good money without leaving your house, but business ventures like these take time to deliver a return on investment. Not every sales agent will be making $100,000 per year right away or even five years down the line. Be realistic about how much you’re likely to sell and how much you’re likely to earn.
Let’s face it, whether you call it multi-level marketing, direct sales, or network marketing, the entire industry gets a bad rap. It’s often labeled as a pyramid scheme or get rich quick scam, and frankly, there is ample evidence to approach it with caution. However, as I have studied trends in this business model, I have come to a very different conclusion. One that actually suggests that network marketing can play a crucial role in how well baby boomers and others transition into retirement.
Commenting on other blogs and social networking profiles will expand the MLM distributor’s own network of friends, generating a new group of free MLM prospects. This should not be confused with spamming. Commenting should be done on specific posts and not just in a haphazard manner. Remember; each comment will include the name of the MLM distributor and a link to their website, blog or social networking profile.
Lead generation is important for your business to grow; as a business owner, you however need to know how effective these leads will be for your business. This can be measured in terms of returns on investment and how fast it will be. The MLM Company should be able to give you an estimate on when they can generate these leads and instigate them for action, and when you should be able to see results.
Walter J. Carl stated in a 2004 Western Journal of Communication article that "MLM organizations have been described by some as cults (Butterfield, 1985), pyramid schemes (Fitzpatrick & Reynolds, 1997), or organizations rife with misleading, deceptive, and unethical behavior (Carter, 1999), such as the questionable use of evangelical discourse to promote the business (Höpfl & Maddrell, 1996), and the exploitation of personal relationships for financial gain (Fitzpatrick & Reynolds, 1997)". In China, volunteers working to rescue people from the schemes have been physically attacked.
“I wouldn’t be where I am today without the knowledge I gained from [Michael’s] live events and training CDs. Two MUST-HAVE [programs] in your CD library should be ‘The Total Success Pack‘ and ‘Building a Better Life.’ I’ve listened so many times I’ve lost count. PRICELESS information for your journey to success in business and in life… ‘Easy to do. Easy not to do’ The choice is yours.”
It is almost impossible to stop the industry because of the amount of investors and lobbyists who are profiting from them. “During the Obama administration, the Federal Trade Commission made its biggest-ever effort to curb this industry when last summer it slapped nutritional supplement–seller Herbalife with a $200 million fine and, as part of a settlement with Herbalife, demanded it restructure its business so that it would “start operating legitimately,” as FTC Chairwoman Edith Ramirez put it.” (Slate) The current administration under President Donald Trump will be a completely different story and may very well be a boon for the MLM industry. Let’s start with Trump himself. In 2009, he licensed his name to an MLM, which eventually went bankrupt, along with many of his participants. Many in Trump’s cabinet have strong ties to MLMs as well: Betsey DeVos (whose husband is the president of Amway — by the way, DeVos family has donated $200 million to the Republican party over the years), Ben Carson, Carl Icahn (a billionaire who is also a major investor in Herbalife and holds five board seats at the company), and Charles Herbster.
A downline distributor is a recruited distributor from whom the sponsor (the one who recruited them) gains commissions. Every compensation plan involves recruiting other distributors to help sell the company’s product. Some compensation plans provide higher commissions for recruiting successful distributors (quality over quantity). Other plans only focus on simply hiring more distributors (quantity over quality). Overall, downline distributors help sponsors gain extra commissions.
On a side note, I started using doTERRA about five years ago and love the oils! I didn’t join them to sell, or make money. I just wanted to raise awareness in what they could do and help with for individuals and families, as they did me and mine. In fact, many of my friends are now distributors (not under me). Lost opportunities? Not at all, in my book. More power to them! Back to R + F, and a little more insight from you would certainly scratch an itch.
The Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."