We have all tried it – been infected with other peoples enthusiasm and decided to join an MLM or Network Marketing business. Plenty of money changed hands (out of mine and into others) and I embarked on a crusade of bombarding my friends and family.
After a few months, I found that no-one left in my address book were returning my calls and the ones who had joined were not doing much. So, things petered out and after a year I could not even remember what the whole thing was about.
The main lesson I took from this myself, was that MLM does not work. After a period of time my friends came back and things were forgotten.
Is this story a familiar account for you? I am sure that I am not the only one to go through the experience in this way and it must be common because it seems that 96% of MLM newbies have an experience that is quite similar to my account.
This happened to me – but over the years I became involved in other businesses and whilst these where marginally successful, unbeknown to me, my perspective changed. I was now seeing things through the eyes of an entrepreneur. When I was then offered another opportunity with an MLM business, I found myself looking at it differently than the last time.
I studied MLM and those that had been successful and those that had not and the results that I found were quite remarkable, to me at least.
I asked myself the question about the type of approach with most MLM businesses when compared with a standard one.
I realised that a true business person approaches a business from a certain angle. They fully research their market, they invest in obtaining the correct information and then they invest further in marketing, staffing, premises etc and they pay for accountants, solicitors or lawyers and bookkeepers. One of the key areas here is marketing – or ‘how are they going to get a decent level of customers’.
Most MLM newbies look at their new business through the eyes of an employee. With the best will in the world they have no knowledge of how businesses should be run and so it should not be surprising that they invest in the wrong areas. Of these areas, it is marketing that is the least understood.
The next point I found is about the product or service itself. MLM newbies tend to concentrate on this area when this is the least area of concern in an MLM business. I can catagorically declare here that the actual business opportunity itself is of no real importance in the early stages. Of course you will need to know about your product or service to be able to sell it but this is not the most vital of skills to master – if it is so good then it will largely sell itself will it not?
Now at this point I was feeling a bit heady – I could tell that I was onto something now.
So, here is the MLM newbie, he has worked hard by contacting all of those people they know – some have joined and others are hiding behind the couch (sound familiar ?). This persons downline is stuffed with people who have done the same and whilst this will generate a small income, it does not generate enough to even remain qualified as an agent yourself.
Therefore, urgent action is needed – and this is usually where the purchasing of leads is the next step. This increases the money out and does give some activity but after some hard work trying to get people in, a typical positive response rate is around 2%. I truth, these new people are no different than those in the Family and Friends that were initially recruited and several months down the line, it is realised that the money spent on the marketing effort has not been replaced and you realize that this is not the way to become financially successful.
When I studied how the top 1% work, I realised that they do it much differently. They invest into their business by obtaining the right information. Most of that data costs money because it is valuable and it has usually been produced by the millionaires who were in this 1%.
I therefore invested in myself and spent less than I would have done on lists to obtain the information services. I therefore invested in elements which were necessary for my success – at least in my opinion. I downloaded books, articles and watched online videos and I realized that I had hit the golden seam – this was definitely it.
After considerable reading and watching, I realised that the way to approach MLM was to recruit other good MLM people who were facing the dilemma “how can I get really good people into my downline”. These people were who I wanted in my own downline. But they already had their own MLM opportunity that they were promoting so how was I going to do this?
You will not believe I am sure that all I had to invest to find out the answer was a mere $50. I learned the answer to this and other questions but most importantly, it cleared me to offer leadership and direction to my team and I now had a much clearer path laid out before me. I now had a firm plan to stop being the Hunter and to become the Hunted.
That is the basis of my new discovery in a nutshell, anyone who wants to become a successful MLM entrepreneur needs to think differently. If you think the way you always have, you will get the results you have always got, so you have to do something different. The person that I had chosen to be the subject of my study was one of the most successful MLM business person on the planet. This man had used the same new principles that I had just heard about to build one of the most successful MLM downlines in history.
I am now in the process of building a strong team in my opportunity. I do not concentrate on the opportunity itself until the rest has been put into place. When a new person contacts me – I actually vet them first. I do not want to waste my valuable time with someone who will not follow my system fully – I am just not interested in doing this any longer.
In my opinion, if one shows their downline true leadership and direction, then they will follow you and many others will be attracted to you because of this. If I come across someone who does not like my approach, then that is not a problem – they need me more than I need them so they can go and work with someone they like. I only want to work with people who are determined to succeed and to work smart in way that will benefit us both.
Thank you for reading my article and I hope that it has helped you to understand the secret recipe for success in an MLM business.
Alan Hill – MLM Business Champion
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