Thursday, August 09, 2007

MLM Training and MLM Lead Generation - How Much Has This Mistake Cost You?

MLM leaders usually use systematised MLM training to create pyramid recruiters.

I know it's a bold statement that strikes at the heart of distributors and upsets them. But this is an important lesson you should learn, and I'm not trying to make friends by teaching it.

MLM network marketing companies such as USANA, Herbalife, and ACN are all legal businesses because they carry quality products/services. They make money by distributors selling more product. Notice though, the emphasis is on product, not recruiting.

Yet MLM is often marketed as a pyramid.

Why? Leaders find it easier to recruit new people than to try to teach someone with zero sales or marketing experience how to market right. They just keep looking for better people. It's that simple.

As a result, the newbie distributor is trained on the same emphasis. They try selling the product at first, but their leads don't buy because the distributor has to educate the prospect in order to justify the (usually) high price.

Because of their lack of experience, they don't know how to justify the price. They say things like, "It's not about the product, I don't care about the product, you can make a lot of money with this."

Recruiting people on the hype of money talks to the natural greed of humans--getting something great for nothing. This receives a lot more interest as well as scepticism.

In addition, there is a cash incentive for the MLM distributor. Recruiting new distributors earns bonus commissions from the high-priced starter kits. And let's not forget that there is the recurring "autoship" order which new distributors are now forced to purchase monthly to remain eligible to make that "$10,000/week".

Essentially, new MLM distributors who have never owned a business before are not use to doing work without pay for longer than 2 weeks. When they don't get the "now" cash they quit anyway. It's no way to build a long-term business.

On the other hand, if distributors were to begin by learning to market an inexpensive retail product that educates their prospect instead, they would see "now" cash in their first few days.

Remember that MLM is about selling products. You should be learning to get 5 new product customers for every one distributor you recruit.

You then train the one new distributor to get 5 new product customers and one new distributor.

In this way, you stop operating your MLM business like a pyramid and you run a business with integrity. Make sure when you receive your MLM training that you first master selling a retail product, followed by learning to enrol repeat customers, before you finally learn to recruit new MLM distributors.