Posted by Grant Thomson in
MLM |
4 responses
You cannot succeed in Multi Level Marketing or MLM by yourself. Success in MLM is reliant on one thing – duplication. MLM attracts people from all backgrounds. Those who have the best results are the people who are teachable. These people just get on with the activities suggested to them by their sponsor or upline. The more closely you can duplicate and copy a proven system the higher you chances of success will be
The MLM ‘dream’ also attracts the super sales type. These guys believe that it is all about recruitment and in particular the numbers! Their attitude is simply “Throw them up against the wall and see who sticks”. They Believe they have the skills to influence enough people to join their team which in turn will result in riches.
I have a sad confession to make here – when I embarked on my MLM career this was the category that I fell into. I had worked in sales and sales management for a number of years. When I joined my company I thought I would get rich quick as I could easily sell the dream to others. Here lies the MAJOR problem. I found it very easy to sell the dream and convince people. However massive wealth does not come from building a big downline. You can sell something to someone for all the wrong reasons. Many people like the idea of achieving financial freedom. However, when it comes to doing the actual work they never quite get going. Often they like the idea of the Helicopters, Ferrari’s and the Mansion but are not willing to put in the effort necessary to achieve their dreams. Because they don’t duplicate the successful systems promoted by their upline they often fail
Here’s the secret - it’s not what you do, or the number of people you recruit that is important, it’s what the people you bring in to your business do!!!
In my second year in MLM I was recognised by my company as their Top Recruiter in Europe. I was recognised in front of around 10 000 other distributors at a major European training event. That Year I had recruited like a mad man and built a substantial downline, but here’s the sad part – I was broke! Getting the award was an achievement that I’ll never forget. Nevertheless, I remember chatting to my wife at the event and agreeing that it would be better to quietly progress up the marketing plan and earn more money. In fact it was a bit embarrassing to be held up as a great success story but knowing the reality was very different and that we couldn’t afford to pay all our bills.
Great wealth in both MLM and Direct Sales comes from building long term residual income. Residual income is what is life changing. Residual income enables you to walk away but still get paid Month after Month. Residual income only occurs when people duplicate a successful system through many levels within your organisation. If residual income is the holy grail how is it achieved. The answer is very simple – have a system that everyone can follow and implement. Most MLM companies have very simple systems to follow that include some of the following; hand out thousands of flyer’s each day, stop strangers and conduct surveys in the street talk to all your family and friends…and so on. All of these things are easy to do but Jim Rohn puts it so well “they are also easy not to do”. A major problem is that when you recruit someone they will tend to replicate what you do. Therefore if someone joins your business because you handed them a flyer in the street this is what they will usually end up doing. The reason for this is that they are encouraged to do what got them into the business in the first place, after all, if it was good enough to get them, it must work. Can you see there is a kind of logic here!
A huge downside of these types of activities is that most of them are mind numbingly boring. You are often subjected to abuse from total strangers and ridiculed by family and friends. Some people don’t have a problem standing out in the Rain the Sun and the Snow handing out over 4000 flyer’s daily but very few will copy them. There is no duplication. The biggest reason is that these types of activities are not attractive. How many professional people do you know that would be willing to give up their jobs and spend 8 or 9 hours tramping round the streets handing out flyer’s on a daily basis. Hhhmmmmmm…..lets see!
In response some companies come up with marketing methods that focus more on referral marketing. This is an attempt to alleviate these issues but you tend to find that they can be very time consuming. I found I was driving all over he country and was chasing prospects from Dawn till Dusk trying to convince them to join my business. I was so busy chasing people that I had no time to deliver any meaningful training to them once they joined. So the cycle of prospecting, chasing and cold calling continued. I changed my method of operation on a number of occasions, attempting to find something that was easier for a new distributor to implement. However, the result was similar in that very few distributors carried them out. This highlights a side issue regarding involvement. No matter how easy things are some people will never get going, and I suppose this is just a fact of life. A quote I heard recently stated that “Your heart won’t be in it if your wallet’s not in it”. You can start most MLM businesses for around $200. The issue here is that there is very little money invested at the beginning so it is easy to walk away if things don’t go to well.
After 6 years It became clear that this was not the way I wanted to run my business and I began searching online for alternatives. As someone with no IT skills whatsoever this has been a lengthy learning process. The lucky thing is that I have learned from some leading experts who have spent years developing their skills. The good news is that today you can copy and learn what they know in a fraction of the time. During my time in MLM I heard it over and over, “there is no need to reinvent the wheel”. That’s great but the problem is that most of these ‘Old School’ methods of marketing are becoming both less effective and less attractive over time. At some point it must be beneficial to modernise and catch up with the trends and be aware of what is going on in the marketplace. The Internet is awesome and today you have a massive opportunity to gain the most up to date marketing knowledge available anywhere on the planet. admittedly it will take time to master these new skills. Nevertheless, once mastered you will have a truly duplicate-able system to use in order to prospect for new distributors. But more importantly a duplicate-able system to pass on and train your new team. If used correctly the Internet will enable your team to communicate and build relationships with more people much faster. It will be far more attractive to prospects as you can truly work at home and not from home.
If you can increase your skill set you can deliver more value to the market. The more value you can provide the more you are worth. The amazing thing is that if you learn some basic skills like how to use some of the Social Media or web 2.0 sites you will be in big demand. You will very quickly know more about this technology and how to market your business than 90% of people involved in MLM. Once you have mastered these skills leaders in the MLM industry will be attracted to you because you can mentor them and teach how to utilise the technology.
There is no doubt that building a business becomes much easier when you adapt and learn what the Internet can offer. It is easier to promote a duplicate-able system that makes the most of peoples time which in turn will enable your team to earn more money much faster than before. Put yourself in the shoes of a prospect who is looking to start a home based business. Given the option of two systems both of which will generate 15 prospects per day, which one do you think would be more appeal ling. A) Trudging round the streets in all weather handing out flyer’s to generate leads or B) Working totally from home around the family and kids, using sites such as Facebook, MySpace, Twitter, Ning, writing a couple of articles and recording some funny videos on YouTube? I know if I was starting out again which option I would pick. For anyone who preferred option A, “May the force be with you” – because believe me – your going to need it!!!
There is no doubt that to succeed in MLM you need to have a duplicate-able system. The only question left for you is this, will you continue duplicating the ‘Old School’ methods, or can you see the benefits to be had by learning some new skills and implementing a cutting edge Internet system.
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I like your site. Very cool. Will come back.
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