Mlms Balancing Act
Should I spend all my time sponsoring or working with my downline members? Even seasoned MLMers rarely discuss this balancing act in training materials. Typically were told to sponsor sponsor sponsor. Its a numbers game.
Some will some wont so what. And on it goes.
Not making enough money? Go talk to more people.
But while that answer is correct its also rather shortsighted.
Managing the growth of your downline levels is one of my favorite topics to dig into with inexperienced members. Lets start with an overview of the business arena weve chosen as a source of income.
MLM or Multilevel Marketing aka Network Marketing is simply a business model used by thousands of companies yes thousands to market and distribute products or services via independent business people. The sales people in MLM referred to as distributors associates agents reps or dealers earn commissions and bonuses on their sales. Sales are generated through retail efforts and the sponsoring of new sales agents that is recruiting new distributors who also make purchases.
As each new sales person joins they are placed in the electronic downline of the agent who recruited them. This allows for tracking of generational bonuses and commission overrides. The beauty of this business model is that distributors are compensated in direct proportion to the people they help. The more sales they help their team make the more money they earn. It is without question the fairest and most equitable business model in existence.
Since the play field is so level and the rewards so gratifying then one might question the need for coaching or training.
How can you go wrong? Just keep sponsoring new recruits and making sales right?
Successful income earners in MLM bring two schools of thought to the table on this issue. Yes sponsor recruit enough people and eventually youll make lots of money. But and this is the pothole this approach leaves you doing most of the work and offers less longterm income security than most business people want.
The other opinion is that you only need to sponsor a handful of people and then work with them to duplicate the process over and over until youre living like a fat cat. This approach basically gives you the opposite results of the abovementioned strategy. You teach others to do most of the work and some day maybe eventually you may enjoy large residual earnings. The pothole here is that there arent many people who can afford to wait that long. Nor do many want to. We want money now!
Well and we want it later too.
After all the primary goal is residual income.
Having stated the opposing strategies it seems logical that one should attempt to strike a balance. And you would be correct. Heres how I often explain it to my MLM rookies.
Attrition Rates: Probably the one thing you NEVER see or hear about in any type of business promotion is attrition. But its a fact of life. It is what it is. People drop out. They quit give up lose interest or never get off the ground.
You could fill a library with the articles about the reasons people quit or fail in MLM. But all the articles in the world wont change this simple fact. So its important that your new recruits understand its going to happen. Not everyone will stick. Be prepared for it. Accept it. But dont let it slow you down.
Disappointment is a direct result of expectations. Give your sales people realistic expectations.
Because of attrition we know for a fact that for every 10 members we recruit its possible even likely that half may fizzle out. Of the remain 5 3 or 4 may show some moderate results. You are fortunate if ONE will get as excited as you are and actually go crazy to build their new MLM business. If you get more than that consider yourself blessed.
Weve learned over time that there are some things you can do to improve the results of the 3 or 4 moderates. Furthermore our historical statistics have shown us that typically you need 3 to 5 of the 1s to build a large income. Your goal is 3 to 5 members who will stop at nothing to be successful.
Gold miners know they wont find nuggets in every bucket of dirt. And they know they cant stop if the first bucket only yields a little dust or a few flakes. Youre also prospecting for gold one bucket at a time. Welcome the flakes appreciate the dust and relish the nuggets even if theyre few and far between.
Monthly Income vs. Financial Security: With the exception of binaries most MLM pay plans consist of levels or generations. And they represent 2 factors that need to be considered. WIDTH and DEPTH.
Remember this fact: WIDTH = Money Now DEPTH = Money Later
Fast money is in the width and longterm security is in the depth. Build with that in mind and temper these 2 factors as you grow.
You have the most immediate impact on your first 2 or 3 levels. These are the people you can influence the most. You have an obligation to offer support but not to do it FOR them. Its the old teachaman to fish scenario. It is in YOUR best interest and THEIRS to help your people achieve their early goals and the Point of No Return. I elaborate on PONR in other articles
If you do nothing but sponsor first level members you will make lots of short term income. Your first level is where the fast money is. However sponsoring WIDE only brings only shortterm money. Youre doing all the work for quick gain.
You have no longterm security unless you help THEM your members to do the same. The deeper your levels grow the more longterm income you build because you have more members earning in DEPTH.
MLMers who earn commissions dont quit.
Thus your balancing act is apparent. Your time should be divided between expanding your first level and taking time to work with your team members to accomplish the same objectives on THEIR respective first levels. It should be noted that not all members of your MLM sales force with be active or grow. I mentioned attrition above. Make yourself available but dont waste time trying to convince them to produce.
Just to Clarify: By all means sponsor wide. Over time go as wide as you can. But stagger your activities to include support time for some of the members youve already recruited. Dont be so selfcentered and moneyhungry that you overlook the power of building depth in your sales organization.
Work with the workers. For every 10 you sponsor its possible that only 1 will be as active as you. Work with that ONE. Get him/her to the Point of No Return. Encourage the others but move on to find new workers.
The Point of No Return is a goal line. Lead people across it dont drag them.
Apply this balancing act to your success and I’ll see you at the top! You too can enjoy the results of a successful MLM business. Visit http://www.michaelclutton.com to get more details on The Point of No Return and other issues.
Michael Clutton has been successful helping others to achieve their home based business goals since the early 90′s.
About the writer: Living in small town in western NC Michael Clutton has enjoyed over 15 years of success in the home based business field. Most noted for his efforts in the mid 90′s Michael received numerous awards for achievement. Having appeared on stage many times across the country Michael has been blessed with great networks and long lasting relationships that have endured good times and bad.
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