Why Recruit Other Network Marketers?

recruit other network marketers - make friendsYou are a network marketer and you want to recruit other network marketers into your network marketing business.  It seems counter intuitive to market your offer to other network marketers, and that would be the wrong thing to do.  Think about it: If somebody comes to you trying to recruit you into their network marketing program because you are in network marketing, that would be repulsive.  But there is nothing wrong with making friends of other network marketers, and even helping them with their own program.

This can seem like a waste of time.  After all, shouldn’t you be going after somebody unconnected so that they can join your program? Here are some very good reasons why network marketers are your best target market.

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Network Marketing: What You Don’t Know That You Don’t Know

Owen Satterlee at Disneyland

Owen Satterlee at Disneyland

I always wondered what secrets Network Marketing experts hold back.  What they do differently that makes them so successful.  Here is a partial list:

1. There is nothing you do not know except for how hard and or smart you need to work

It is all a numbers game and it looks something like this:

a. For every 1,000 people you contact, 10 may show an interest
b. For every 1,000 interested people, 10 may sign up
c. For every 1,000 signups, 100 – 200 will stay active
d. For every 1,000 active, 30 or so will be superstars

So it takes a lot of talking to people to get to a superstar.  You can improve your numbers by advertising or educating prospects online.

2. Your best distributors will be close to you.  If you know what you are doing, having a friend learn from you tends to produce a very good distributor.

3. Great remote distributors will call a lot and have good questions.

4. People will sign up, spend a lot, then quit.  Unfortunately these people are looking for a get rich quick scheme.

5. People sign up when they are ready, not when you are.  Keep things light and positive and you will get good results in time.

6. You may have a great distributor already in your downline.  He just might wake up in 20 years.

7. Quitting is the only way to fail.

8. You have to be successful in order to become successful.  How does this work?  Depending on how you find prospects, you will have to be professional, dress well, be well groomed, speak well, understand your products and business, and have confidence.  This is not about lying to the prospect.

9. You cannot tell a prospect what you make, good or bad.  Your results are not typical.  I would also make sure to set reasonable expectations.  For instance, telling people it is easy is probably not a good idea.  Telling people it is hard work but very straight forward might be better.

10. Be different.  If doing the same thing as others works for you, feel free.  If it does not, it might be a good idea to try something different, often.  Keep trying different things until you find something that works.  This is especially true in sales.  Selling the same way as others probably does not work.  In recruiting, we just try to reach a different audience from everyone else.

All you really have to do to be successful in Network Marketing is to create a process for recruiting and training distributors.  Keep working your plan and you will do great.

Recruiting Is Impossible, Or Is It?

Jeff Satterlee at IHOP in Scottsdale, AZ

Jeff Satterlee at IHOP in Scottsdale, AZ

Let us start with an example.  You want to hire somebody for minimum wage to perform a simple job.  Are you going to ask your next door neighbor, who happens to be an electrician, to become your employee and be paid minimum wage?  No, you are probably going to look for a teenager or somebody seeking an easy part-time job.  Still, you are going to be choosy.  You are going to have them fill out an application, interview them, and check out their references.  How do you find your candidates?  You might keep your ears open for somebody looking for a job.  You might ask your friends if they know of anybody looking for an entry-level job.  You might also place an ad in the local newspaper.  You collect your applications, do your interviews, check references, and hire one employee.  A lot to go through right?

For recruiting network marketing distributors, which we hope will ultimately be people that recruit more distributors, we need to do some of the same things.  We identify what our candidate looks like: their interests, needs, demographics, and other identifying characteristics.  We might ask our friends if they know anybody that fits the bill.  We might place an ad in the newspaper.  We talk to people and see if they are a good fit, then ask them to join.  The person will join or not based on what they felt about the opportunity,  so it is definitely going to be a two-way interview.

In network marketing, you are recruiting commissioned sales people or the like, and they are an interesting bunch.  Some will produce and some will not.  Most will not in fact.  You are just hoping for a small handful that do very well.  So you continue to look for candidates, put them through the process, and hope that some will join.  Most will not, some will.  Most who join will not produce, but some will.  So as a network marketing recruiter, you just keep recruiting.

This article is going to take you through the elements of recruiting step by step, starting with joining your company.  By the end, you will understand what it takes to build a network of distributors for a network marketing company, and can decide whether it sounds like your cup of tea.

The first step to being a successful recruiter it to join a company.  With our company, for example, you purchase a starter kit for $39.95 and fill out an International Agreement.  Most companies have similar procedures.  How do you know which company to join?

You can evaluate their pay plans, interview several distributors, or just hope for the best.  My advice is to make sure at least one distributor in the company is successful before joining.  Not everyone will be successful, some will be new, some will do nothing. You just want to know that the pay plan is good enough to produce a full-time income for somebody.

One other consideration is whether you will join a new company or an older established company.  There are advantages and disadvantages with both.  The newer company may be growing quickly and be very exciting, but has much more risk involved.  There are many different events that can put a quickly growing company out of business in a flash and you need it to last for years.

The older established company is less exciting but also much less risky.  The opportunity is still there no matter how old the company is, as distributors will come and go, and the organization will never get too big.  You need to do your job better than most so that your own organization will grow, but excellence is achievable.  Expect that you will not see a full-time income in a year with an established company, it will probably be 5 years down the road.  Good luck with your choice.

The next step in our journey to recruiting superstardom is go get business cards.  The idea is to build an image and you do this by being professional: Keeping yourself well groomed, dressing nicely, having professional looking stationary, a company name, a web site if possible, and or professional business cards.  None of this will recruit a single distributor by itself, but it gives you credibility. Perhaps not among your warm market of family and friends, but at least among people who do not already know you.

Most of the time the network marketing company will have vendors that will create your business cards and stationary for you, so make use of them.  If you are provided a free web site, make sure your business cards have your web site name on them.

Part of what you want to do at this point is to be social, make friends.  Find new friends through your network of current friends.  Don’t hard sell everyone, just make friends at this point.  You can always hand them your business card as contact information… maybe they will ask you more about your business.  Tell them the truth: that you have just started your business and you are looking for other distributors to partner with.

A note about your company name: Make sure to learn how to create a business entity before you start using Jack Jones LLC or My Company, Inc.  There are legal and not so legal ways to name a company.

In this article, we have been talking about being professional, having business cards, meeting new people, etc., all of which are important but when do we sign up a new distributor?  When they are ready to sign up.  You see, you cannot sign up a distributor.  You can help them through the process when they are ready, but you cannot control when this happens.  There are a few things you can control though, and that is where you should be concentrating.  By the way, it does not matter how badly you screw up the process, given enough people somebody will sign up.

So that leads me back to the thing you can control: making sure your pipeline is always full.  Networking and meeting new people is a great and inexpensive way to do this, but it is not always effective.  Sometimes you will reach dead ends everywhere you turn.  So now you have to meet new people without having a connection to them.  There are all sorts of ways to do this inexpensively: you can meet people in your coffee shop, you can do shows, you can post business cards on bulletin boards, you can hang information on doors… most of which are extremely discouraging… but they are cheap.  You can do basically the same thing on the internet: post classified ads to try to find new people.  Problem is, everybody and his dog is doing this where it is free, so there is a lot of noise.  Still, these are cheap ways to find new people.

On the other hand, you can also find new people by paying for advertising.  Be warned though, this can get very expensive.  So before you go big, go small.  Test out some classifieds and see how people respond.  The idea is to be honest and ask for what you want.  It may seem that spinning your opportunity to look great is the way to go, but it is not.  If you get one person to answer your honest ad and ten to answer your “spinned” ad, the most likely outcome is that your one good lead will be much better than your ten bad ones combined.  And we are looking at the long term here, not the short term.  One good distributor can make you rich where 100 not so good ones will make you miserable.

So keep your pipeline full with good leads.  Get them for free when you can.  Pay for them when you must.  But the more people in your pipeline, the more you will ultimately sign up… I mean, the more that will sign themselves up… again, you cannot reliably control the sign ups.

I have to say I have been discouraged at times by lack of sign ups.  Then somebody will join and blow me away.  Just work at keeping the pipeline full and you should do ok.

Above we talked about keeping the pipeline full with good prospects. How about just selling the dream?  You sponsor two, help those two sponsor two, your first level helps sponsor the third level, and you have a large team fairly quickly.  This is what I like to call selling the dream, or pyramid marketing, and it does not work.  Why?

1. If your organization has no purchase requirement, nobody will purchase

Why purchase if you are not required to?  If you are purchasing only to get your downline bonus, why purchase until you have downline volume?

2. If you have a purchase requirement, any delay causes fallout

In other words, if I am not making money until 6 months from now, I am not going to purchase products for the next 6 months!  Then I am going to quit.  Turbo MLM building can work but it is only temporary.

So you can see that selling the dream is not the best approach.  So what is?  Working the business like a business is what works.  You sponsor people based on the merits of the program; they purchase products to learn about the products, sell the products, or because they want to buy; and they work their business similar to how you work yours.  Consistently and constantly.

Not everyone will want to join, only people who want to start a business and work at it will join.  And some of those people will not be successful, but some will.  So you sponsor 10 of which two are good; each of the two sponsor 10 of which two are good, and so forth.  Then you have a good team in three to five years that will generate income for you the rest of your life.   Could it get more exciting than this?

By the way – you never really stop sponsoring.  If you like, you can help your downline sponsor… that is up to you.  Helping your group out as much as you can is always a good idea, for their benefit as well as yours.

Do you have a different method of building your network marketing business?

How does SplashPlan.com help me recruit for my network marketing program?

SplashPlan.com allows you to sponsor others as SplashPlan members… but ultimately how that puts new distributors into your network marketing program is as follows:

1. Some people will join SplashPlan.com without a network marketing program.  Their first choice for a program will come from their sponsor, but they could choose another program.

2. Some people will join SplashPlan.com and have a network marketing program.  This will put you in touch with people who already believe in this kind of business… and if someday they decide to make a change, they will think of you first.

While adding to your program may be a little slow through these methods, you will get great people.  You will also earn affiliate income through our training products in the mean time.  Make sure to override them with your affiliate links.

Your biggest goal with SplashPlan.com should be to provide your downline with the best service possible so that they will hold you in high regard when they talk to their friends or when they think of making a change.

Seasonality In Business

When you think of seasonality, you might think of hunting or fishing season.  Maybe you think of the seasons of the year such as Summer, Winter, Fall, and Spring.  Or maybe you think of seasons of life.  But business also has seasons and there are two kinds.  One kind of season has to do with the business cycle when you have boom times and bust times, or growth and recession.  The best time to start a business is at the end of a recession as the economy is starting to grow again, because weaker businesses tend to vanish during recession and because there has been pent up demand that is starting to be released.

The other kind of seasonality in business has to do with yearly cycles in sales.  For instance, winter coats sell best as winter is starting to set in.  Winter coats don’t sell well in the heat of summer.  Most retail products have selling seasons with the most common being the Christmas selling season.  That is the pinnacle of all seasons with people buying gifts for others, and most products are impacted by gift giving.  There are exceptions to this rule so you must really know your product and perhaps gather data over a couple years to really know for sure when it sells the best.

Why is it important to know when your product sells best?  Advertising for a product outside of a selling season is like trying to run against the wind.  You might move a bit but you are going to have to put in a lot of effort, resources, money, etc. to get it done.  Now if you are selling during the product’s busy season, it’ll be like running with the wind, you will find it much less effort to sell.  So your advertising dollars are best spent during or just before the product’s busy season.

Another reason that knowing the product’s busy season is important is that you will be impacting your customer service if you run out of the product at the right time, so you may need to stock more during the product’s busy season than during the off season.  One of my clients doesn’t have the warehouse space to keep a full stock of all items so they use seasonality to stock the right items at the right time and only use the warehouse space needed.

Do you find it really really difficult to sell your product and you are thinking about giving up?  See if your product has a season and make sure it is the right time of year for your product.  You may also want to check the economic climate and see if that might have an impact on your product sales.  We find that we get flooded with orders for our gourmet baking goods line towards the end of the year but orders trickle in during the rest of the year.  If we gave up when things were slow, we might miss out on the end of year sales.  By contrast, many people try to lose weight or start a business after the first of the year, when they make their new year’s resolutions.  If you are selling a weight loss product or business opportunity, you might want to see how you do early in the year.

Do you notice any interesting seasonalities with your product?


Are You Charlie Or Alan Harper?

If you watch “Two and a half men”, give me an honest answer: Who would you rather be, Charlie or Alan?  Who would you rather be with?  Ok, so Charlie drinks too much and sleeps around a lot, but he has a house on the beach and rarely works.  Alan, on the other hand, mooches off of Charlie and works like crazy to support his ex-wives.  Personally, I’d rather have Charlie’s lifestyle and or much rather have him as a friend.  And if he could tell me how to be successful by barely working, cool, I’d love it.  I have to admit, I wouldn’t want to sleep around and drink so much, but everything else is great.

So are you Charlie or Alan to your prospects?  Are you the fun person people want to be friends with or the complainer with endless problems?  Do you seem to do well while hardly working or do you do poorly even when you work all the time?  I am not asking you to be dishonest about who you are, I am asking you to believe more in yourself, your mojo, and or your magic.  You are truly magical if you believe it!  Having that positive attitude that people love will make a big difference in your life and in your recruiting efforts, assuming you belong to a MLM company.

If you are banking on a particular person joining your group, you are probably giving off the wrong vibe to them.  Without actually saying this, you must believe that your group is growing and that you don’t need a particular person to join.  They need to join you.  You are the special one, the one that makes magic happen, and they can only benefit by joining you.  But, if they don’t join, it’s ok with you.  You are doing very well, thank you very much.  This is really about an attitude, a confidence that you are a success no matter what happens.

Playing to the person’s strengths is a really good idea.  Seek out people you believe would be really good in the business, don’t just seek out anybody.  Why should Bob join?  Because Bob is the kind of person that people will want to follow.  He is very personable, makes friends quickly, can sell well, is ethical… So if somebody asks why they should join your group, you tell them: “Because I think you could add a lot to our team.” not “Because it will make you a lot of money.”  What’s the difference?  Because people will think you’re a great person when you compliment them.

Make sure to listen.  Listening is very important, much more important than selling, when it comes to recruiting.  Don’t offer a response each time your prospect says something.  Instead, repeat back to them what you think they said to make sure you got it right.  Try to understand where they are coming from.  Is your opportunity right for them?  No?  Tell them that they don’t seem like a match for your opportunity.  Be a friend to people first and foremost.  Find matches, don’t just sell everyone on the opportunity.

Believe in yourself and your opportunity.  Remember that you are magic and that your opportunity will work for you in the long run, with very little effort.  Make sure to talk with people, make friends, be a friend… your business is part of who you are and it’s ok to talk about it, just not ok to recruit anyone and everyone.  Be ready when people ask for more information and get it to them promptly.  Remember that you are in business and you need to execute your business processes well.

One more thing that may help: Recruit some well outside of your warm market.  I like to advertise to get new prospects.  I probably sponsor more by advertising than any other way, but I recruit my best people personally.  Advertising gives me a way to say “This is how I do business”, in spite of the fact that I also do a lot of personal recruiting.

Good luck to you… Remember to be the person your prospects want to be or be with.  Keep a positive attitude!  And, btw, expect nothing from your recruiting efforts and you will surprise yourself.

What Is A Business Opportunity?

To a seeker, a business opportunity is a way to make money.  To a company offering an opportunity, it is a chance to leverage somebody else’s time, talent, or money to grow the business.  Often opportunities are “sold” as having a specific income or potential income, but the risk and reward belong to the seeker as an independent business person.  In other words, the success or failure of a business opportunity is ultimately up to the seeker, regardless of how much help the offering company gives.

A business opportunity typically isn’t employment because employment does not have a major risk or the potential reward of operating a business.  You can hire an employee to run a business subsidiary but you monitor it to make sure it’s operating properly and will have to decide to close it if it cannot turn a profit.  A business opportunity, on the other hand, is at the sole discretion of the independent business person.

A company offering a business opportunity has very little risk if the independent business person is not successful but gets a major reward if they are.  As a seeker, a company is not just going to hand you money with nothing expected in return.  You will have to perform.  You may have very little direction, you will just be expected to create sales however you do it.  In return you may get a brand to use or some other benefit from the company, but they aren’t just going to dole out a bunch of money.

A get rich quick scheme is a way for a seeker to make money quickly.  Actually, it’s a scheme because there’s no such thing as “get rich quick”.  It’s usually a guise to get you to part with your money for very little in return.  A valid business would be an investment of time and or money for a return.  That return may be 30% or more, but it will still take a while to become profitable.  Often businesses can be profitable right away if you don’t count the time you invest.  It might also be possible to earn a profit right away if the independent business person has an uncommon talent or skill.  But generally you’re not going to be profitable right away and it will take hard work.

Most people who join a multi-level marketing company sell business opportunities.  Often this is all they sell, except for the product they sell themselves.  Selling a business opportunity is technically recruiting, which requires a somewhat different skill set.  Still, it is so similar to selling that I personally would not tell people that there is “no selling involved”.  I mean, when you are in business you sell something to someone, that’s what a business is.  If you recruit, product must still be moved in order to make a profit, and the better you can sell yourself, your customer, and your downline on the product, the more money you’ll make.

Often the pitch “no selling involved” is used to refer to distasteful selling, such as door-to-door sales or cold telephone calling.  Using these methods are typically not effective, so I would not do or encourage distasteful selling techniques.  Advertising can be very effective to build a business if done properly and is usually a much more fun way to reach people.  Those you talk to are already interested before they call so you typically don’t encounter harsh rejection.

If you do get involved with a business opportunity, make sure you know what will be required of you and what you will get from the company you’re going into business with.  Make sure you get it spelled out in writing.

It’s All About The Product

When you go into business, it’s all about the product.  Because no matter which marketing method you use, ultimately the customer will either buy the product or not.  That’s why, if you are considering multi-level marketing, you must seriously consider the desirability of the product.  Would you buy the company’s product at retail?  If not, it may be too hard to sell your customer or sell yourself, and somebody has to buy the product in order for you to make money.

When you look at opportunities, you really need to do the math.  You are looking for a 20%+ rate of return for your time, materials, and cash investment.  For instance, if you spend $100 a month and at the end of the year have a $20 per month commission check, you are right on a 20% return.  So how do you do the math?  Try the following on for size:

cr / ci = ri

cr is what you expect for commission or profit for an individual customer in a year

ci is what you spend in dollars to get a customer.  You should include time, materials, advertising, and other expenses.

ri is your return on investment.  .20 would be a 20% return.

For your customer, you may sell to end consumers or other distributors.  You might want to figure out your return in both ways to see which gives you the most immediate return.  Traditionally this is going to be your customers.  Distributors get a break on the product so you get less of a profit on the volume.

The thing we are not figuring on is when your direct distributor gets another distributor.  You do get a cut on the sales to your second-level distributor, but it’s not usually as much as your first-level distributor.  What I would do about the multi-level aspect of your business is to ignore, for financial purposes, that you will ever get beyond your first level.  You might want to allow for a smaller initial return on investment to compensate for the multi-level effect, that’s up to you.

Again, product sales is the most important thing so you should always be selling the product, even when you’re recruiting.  In fact, sponsoring sales people, people who will sell the product to consumers, is usually the best way to go.  Some of you may say that selling the dream works best.  However, the dream gets people sponsored into the business, not selling product.  It also produces unrealistic expectations and unhappy distributors.  You may also get a look from the FTC.  So we sponsor sales people to get product volume, and we can generally bank on the fact that we’re only going to get first level distributors unless we train our great sales people to be good recruiters.

The downside to multi-level marketing is what the MLM company can do to you.  You are pretty much at their whim.  You advertise their way, you sell their way, and at a moment’s notice they could decide not to use distributors any more.  So be careful out there.

We are starting to be really active with a multi-level marketing company again.  We joined the company in 1992 and they have been very consistent. I believe they produce a very good return on investment for recruiting and have an exceptional product line that customers love.  Check them out.

Step By Step Startup Plan

So you have just joined a new multi-level marketing program? What should you do now to help you be successful?

1. Become a business. Being in business has a better image than being an MLM representative. You don’t work for the MLM company do you? You work for your own business so you should have a business name.

2. Get business cards. Exchange them with other people that you meet for their business card so you can stay in touch.

3. Announce your business to your family and friends. Let them know that you are going to sell your products at cost to the people you know and ask if they would like samples. Along with the samples make sure to get them a product brochure or catalog. Note that your family will give you free publicity to their friends, who you also can give samples to, but sell at full cost or at a minor discount.

4. Begin networking your business. Ask people you know for referrals of others who would like the products or might be interested in a business opportunity.

5. Get a web presence and a twitter account. Facebook, twitter, and other social networking sites are nice places to promote your business. You may or may not get orders but you can give it a try. You may also be able to use an affiliate web site set up by your MLM company or an upline distributor to promote your MLM business.

6. Set up a web site, if you can afford it. Having a web site name will improve the image of your business, especially a .com site. Having a web site name can cost you as little as $10 a year, you can either forward it to an affiliate web site for about $10 additional per year, or you can buy web space for about $120 or so per year.

7. Learn by reading books. Marketing, Sales, and Business Management are areas you want to concentrate in. You may also want to read MLM or Network Marketing specific books. Use the library because most books you can buy will also be found there.

8. Remember that you want to market and sell, but don’t forget about the management of your business. You will need to be able to fulfill orders, take telephone calls, and various other support functions for your business. Your business policies will assist in the success or failure of your business.

Make sure to have fun with your business and avoid spending money when you don’t absolutely need to. Good luck to you!

How To Get Free Effective Advertising

Having warm prospects is the gasoline for your business engine. Too little gas and the engine stalls, too much and you can have a fire or explosion. However, too much is usually better than too little. So how do we go about getting warm prospects without spending money?

Networking can be done step by step using the telephone. First you write down everyone you know and their telephone number. Then you call each person and ask them if they know anybody that fits into your demographic profile (don’t literally say this, say “Do you know anybody who cooks?” etc.). Then you get the name(s) and phone number(s) and add them to your list. Then you repeat. If you are unclear what I mean by demographic profile then go back and read my previous blog posts on demographics.

Networking can also be done by meeting new people at the bar, gas station, golf course, grocery store, etc. and exchanging contact information with them. You want their contact information and you want to give them yours. Then you socialize with them. You can add them to your contact list at any time and do what we talked about above, but just like your normal family and friends, you want to continue being close to them and socialize with them. For most people, this kind of networking comes naturally but for introverts like me, this can be difficult.

Other than networking, our option for finding warm prospects is to advertise. You can advertise for cost in many different ways. In addition, you can advertise for free in many different ways, some more effective than others. The most effective advertising you can get is when lots of people in your demographic profile see your ad. However, if you are advertising for free, lots of eyeballs seeing your ad can be a good thing, even if they are not part of your profile. They can filter themselves, you just want to get noticed. The best way to get noticed is to be featured in an article. An article that mentions what you sell and how to contact you is the best. Often companies write their own articles and submit them to newspapers or news outlets, and try to get published. It really is possible to get published and this is one thing you may want to consider attempting.

There are many outlets on the internet to advertise for free and there are websites devoted to telling you where to advertise for free. Just do a google search. Personally, I like the social networking sites but I have also found that responding to blog posts is a good way to publicize your company.

Off line, you can put a big sign in your front yard or a magnetic sign on your car as a couple of ideas. But if you really think about it, there are tons of ways to advertise your business. I often put business cards on bulletin boards at grocery stores for instance.

Use your imagination to see if you can come up with more free ways to advertise. Did you read about the 911 call about the balloon carrying the little boy? DON’T DO THAT. There are limits to what you should do to drum up publicity.

Be ready for when people start to contact you. How are you going to do your sales presentation?

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