‘Teach me some MLM recruiting secrets’ that will help me to give up my 9-5 job in 3 months. I don’t like retailing products”
Boy o boy o boy.
If I had a penny for the amount of times a new distributor has said something along those lines to me, I would make King Solomon look like pauper.
There’s a debate currently going on in the world of network marketing.
And, during this debate the following reoccuring keeps popping up…
Should a distributor focus on making product sales or building a team?
Traditionally, new distributors are normally encouraged to recruit and build a team as early in their network marketing career as possible.
They are often asked to ‘make a list’ and then try to get as many people as possible to watch a presentation, go to a meeting and join a 3-way-call.
They are inviting people to do something that they have NO idea how to do.
What I’m talking about here is all about putting money in their pocket by…
Whenever I’m speaking to NEW members of Team Sofa who tell me that they’ve heard that it doesn’t make sense to focus on selling products and that they should build a team, I ask them the following question…
If you haven’t worked out how to put money in your pocket TODAY, how can genuinely invite people to join your business knowing that you cant teach them how to put their money in their pockets TODAY?
Now in principle they’re right.
The REAL money, the residual income that brings about lifestyle change in network marketing, does come about as a result of building a team.
You will only ever make consistent residual income from the work carried out by your team if they know how to go out into the marketplace and put at least $500-$1000/month (profits) into their bank accounts.
See the big picture?
You learn how to make $500 month from retailing products and then you teach 20 people front line how to do the same.
5 out of those 20 find another 5 good people who are teachable and they duplicate this activity.
In one year you could now be earning a residual income that is based on a solid foundation every month.
I’ve given you the exact formula that you need to find a daily supply of new retail customers WITHOUT chasing family and friends.
This post is going to show you what to do with your new distributors that you will sponsor after you have grown a successful retail product business.
So, if you’re ready, let’s discuss what is needed to build a rock solid team.
Step 1: Implement The Get-em Strategy
A quick win is everything when building a network marketing business.
The mistake that most new distributors make is that they try to sponsor people when they have no idea how to build the business themselves.
Here at Team Sofa I insist that EVERY new distributor goes through the Get-em, Keep-em…., retail mastery formula AND get at least 2 months worth of product reorders from 5 customers before I even talk to them about recruitment, sponsoring and building a team.
The minute your new distributor learns how to get a new customer who is a complete stranger, their belief in their own ability to do this business will go through the roof.
They will be more fired up getting a new customer from a pool of people they have never met before than if they beg and persuade a family member to hold them.
STEP 2: Promote Weekly calls
In this step you need to schedule two weekly calls focused on:
- retail – for all new distributors who are learning how to find retail customers
- recruitment – for more experienced distributors who have customer(s) and want to learn how to teach others how to do the same
So this is a call that all of your distributors build their customer-base will dial into.
You focus on this should include the following:
- A celebration of distributors who have had success acquiring NEW customer over the last week OR discuss any successes that you have had
- Walk people through the steps that are involved in the Get-em Retail strategy
- Give further advice on how they needs to be working with new customers as part of the Keep-em phase
- Promote the benefits of qualifying for the recruitment call – get 5 customers to reorder for 2 months etc
Now let’s discuss the purpose of the..
This call will follow a similar format as the retail call but what you need to do here is to focus the call on the following:
- Celebrate any distributors in your downline who have sponsored a new distributor over the last week
- Promote the next local, regional and international in-person event
- Discuss the compensation plan – what they need to do to rank advance
- Offer some general motivation and remind them that ‘they can do it‘
I have discussed the above calls as though they were separate calls and that’s how I like to cover these subjects.
If you have a significant number of people in your organisation who have a customer base and could benefit from joining a single call where you cover both subjects, then that’s fine as long as you keep the call focused on the elements mentioned above.
I’ve made this point ad nauseam on this blog but the reality is that every second that your distributor does not hear from you, life can get in the way and they can get easily distracted by all off the noise going on in around them.
From a motivational perspective, members of your team will need to feel like they are a member of an exclusive club working with like-minded individuals who are all working towards a similar goal.
Step 3: Promote Events
This is all about social proof.
Whenever most people buy something, there is often a certain amount of buyer’s remorse that sets in.
This is normal and natural and it’s just based on the fact that we have all bought something in the past that turned out to be a waste of money.
The weekly calls will be a great way to keep people motivated and focused on their goals BUT when they can walk into a room and sit next to someone, it will help to strengthen their resolve to overcome obstacles that they will inevitably face running a home business.
If you can get to a point where you have 100 people in your organisation who attend an international event you will secure a downline who stick around and build the business year after year regardless of how many people join and quit your business.
Network Marketing gets a bad rap because the attrition rate is very high.
The main reason for this is that expectations are often poorly managed and prospective distributors are often told that they can earn $ thousands within months of joining.
To build a network marketing team that grows and duplicates, it’s important to encourage your team members to take time to build a business on a strong foundation and manage the expectation that they will have to learn skills and get to know the organsiation over a period of a year before making significant life-changing money.
That’s what I tell everyone who joins my organisation and I would advise that you use the same approach as well..
I like to use the NLP principle of future pacing and take them 1 year into the future where they can see themselves earning a reasonable income on a part time basis.
I’ve had people say to me…
Won’t this put people of joining your team if they think they”ll have to wait 1 year before earning decent money.
I don’t care!
If someone isn’t prepared to develop the skills and learn how to build a business the right way, they are going to cause me and other members of Team Sofa a headache in the long-term and our team ethos is about building a business that is enjoyable.
Step 4: Look for Stars Downline
There’s an inevitable truth when it comes to building a downline…
You will sponsor people who are better than you!
…which is exactly what you want to happen.
Your success in network marketing is going to be directly proportional to the way that you manage your time when supporting your organisation
But here’s the truth..
Only 20% of people in your team are going to be worth 80% of your time.
You need to look for the following qualities of people in your team:
- They attend every weekly call.
- They have demonstrated that they are teachable because they do what you tell them to do – like following the Get-em retail strategy
- They don’t make excuses at every opportunity when you tell them to attend a meeting
- They are products of the products and it is clear that they are experienced a benefit from at least one of the products in their product catalogue
These are the people that you should focus your time on but it common for distributors to spend an inordinate amount of time with team members who have not demonstrated that they are serious about building their business.
Don’t do this.
While I’m on this subject let me expand on the controversial ‘product of the product’ statement that I made earlier.
In recent years there has been a lot of negativity surrounding distributors who have encouraged members of their team to spend a small fortune buying products on a monthly basis so that they can qualify for incentives, some of which might include:
- an opportunity to sit at the top table at the next corporate event
- have their photo taken with a ‘superstar’ within the organisation
- qualify for a trip
Sounds fair enough but the problem is that when you encourage a distributor to buy more than they can sell/consume and they end up having store products in their garage which will end up causing them to quit the business.
All you want your new distributor to do is to take a couple of the products on a monthly basis that they get some real benefit from. This will constantly remind them that they are building a business that can help other people in the same way that the product has benefited them.
If your new distributor does not find a product that they experience a real benefit from they will NEVER build a successful business and I would advise you to give them their money back and encourage them to find another company with products that they are passionate about.
A culture where distributors are stock-piling products in their garage so that their sponsors and upline can make a small fortune in bonus cheques is a recipe for disaster and this is not how network marketing is supposed to be built.
If a customer has a growing retail customer base that’s making them a monthly profit AND then are using some of the products that they love then this is the only way that a business should be built.
Yes, it’s true.
When someone signs a distributor application form and registers their distributorship with the tax authorities, they are automatically entitled to some of the following benefits:
- % of the rent/mortgage can be written off against tax
- % of marketing expenses (internet marketing costs) can be written off against tax
- % of utility bills( phone, electricity, gas etc)
- % of the products purchased for personal use and samples can be written off against tax
So, if someone has a 9-5 job and they are a distributor in their spare time, and all they ever do is to use the products, they are automatically entitled to tax benefits that a non distributor will never get access to.
The reason for starting a network marketing business for most people is to earn an income to realise their dreams and not just save a few thousand dollar a year by paying less tax.
So, if you follow the advice given above and help every new distributor that you sponsor to build a solid foundation of retail customers, which then gives them a growing pool of people to sponsor from, you will, over time build a downline based on a solid foundation.
That’s it from me today.