April 20, 2009

Why MLM Sponsoring Is Thought To Be Difficult

“Do I need to know and recruit many people to be successful in MLM?” is a often asked question.

The common reponse from many upline sponsors is something like the following…

“No, if you recruit just one person every month or two, you can be very successful in MLM, and create a substantial residual income.

They will go on to tell you that the people you sponsor do not have to come from your “warm market,” (that is, your friends, relatives, and people you already know).  They say, just think of all the people you interact with every day in your normal activities!

Try this: take a sheet of paper and a pen and make a list of the names of EVERYONE you know, have known, have done business with, etc.  You will be amazed by %how many% people you come up with.

Surely not all these people will join your MLM company, however, you can still be very successful if only one in a hundred elects to join.  Statistics show that if one out of every hundred people you contact about joining your business, does so, it will be enough to make your car payment, another one will make your house payment, and one more will retire you!

That’s really not so bad.  Three out of every one hundred is achievable, but you have to make the contacts.  As the saying goes, “the more you tell, the more you sell.”  Additionally, all the people on your contact list know other people and although they might not be interested themselves, they might refer your to other people who will be interested.

However, there is one flaw in this whole process and that is that you have to be willing to be rejected by 97 people.  That is a lot of rejection and most people will not last that long.  And initially these are people you at least know, so the rejection is even more difficult to accept.

How many people do you know who can go out and face 100 people they know and get turned down by 97 of them and just continue to keep plugging along trying to recruit or sell products to an unwilling market?

If you are fortunate enough to recruit an established “heavy hitter” from another MLM company who brings along his existing downline with him, then the above answer can be technically true depending upon your company’s compensation plan.

It is extremely unlikely that you will be able to find a “heavy hitter” who can rapidly go out and develop a large downline below you if you are only landing “one person every month or two.”

So what might you do if you don’t want to face massive rejection and you are not going to be fortunate enough to recruit a “heavy hitter” early on in your MLM career?

Instead of bugging all your friends and family members and rapidly becoming a member of the NFL (No Friends Left) club, or bugging everyone within 30 feet of you as advocated by some sponsors, you need to narrow down your target market.  Everyone is not your target market.  Your target market is made up of people who are already wanting to start a home business, to earn extra money on a part-time basis, are looking for a MLM company to join or are already a member of some other MLM company.  You can even further narrow down your niche to only the latter group if you desire.  Then encourage them to come to you and get them to join your company by employing a soft sell method instead of the hard sell methods pushed by many MLM sponsors.

“And just how are you supposed to do that?”, you might ask.

Well first you need to get their attention and interest by offering them something such as a free report or preferably a funded proposal that is relevant to your market and getting them on your mailing or contact list.  Then, once they are on your list, you develop a relationship with them by providing them frequent free useful information relative to your product, company, the MLM industry, salesmanship, or marketing, etc.  In their eyes you will quickly become an authority figure.

If you have correctly identified your market, prospects will soon be calling you for guidance and asking how they can enroll in your program.

To read more about funded proposals, free reports, and relationship marketing and how you can use them in your enrollment efforts, click the links in the resource box below.

George Dodge believes relationship marketing to be superior to all other MLM recruiting methods. Download The 7 Great Lies of Network Marketing free report and then go on to discover the secrets of effective MLM Recruiting methods made available with the use of the Internet.

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Filed under Marketing & Sales, Mlm, Multi Level Marketing, Network Marketing, Other - Advertising & Marketing, Small Business by Philip

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