Multi-level marketing (MLM) has been around for decades. Entrepreneurs buy a business kit, and the right to purchase the products for a wholesale price. They then sell the products for list price while telling others about the opportunity. Each new distributor recruited buys products through his recruiting distributor. Distributors who recruit new marketers get a percentage of the profit produced by that person plus every dealer coming into the business “under” them.
Success in network marketing seems to come easy to some, but not to others. The reason for this has little to do with luck. Here are three important activities that contribute to success in network marketing:
Convincing People to Use the Product
It is easy to let the potential for wealth override the need for customers. Just imagine what would happen if nobody actually used the product. Not everybody wants to be an entrepreneur. However, most people enjoy using high-quality effective products. The MLM enthusiast can forget this fact; he is so excited about the business, that he thinks everyone he meets will want a piece of the action. Instead of showing how great the stain remover works, he launches into his pitch barely two words past “hello.”
Enthusiasm and a positive attitude are important, but timing is everything. The smartest approach with friends and family is to tell them about a great new product you are using. It is even okay to show them how it works. If they like the product itself, tell them of your involvement in the business, and ask them to purchase a sample. Your relatives know what you do for a living; if they are interested in going into business they will mention it. The last thing you want is for people to start avoiding you because they think you are going to keep trying to convince them to go into business with you.
Leads are the Lifeblood of MLM
There are reputable companies that sell leads. MLM business people purchase leads priced according to how recently the lead expressed interest. The newest leads are more expensive, because there is a better chance that nobody else has yet spoken to them. The difference between working with these leads and your uncle is that MLM leads want to go into business. It never hurts to promote the product; however, your task is not so much to convince them of the quality of what you sell, but rather, of the big picture that you are so excited about.
Helping the Down-line to Succeed
Once you have recruited a down-line, offer to help them. Talk with them on a regular basis. Weekly meetings are a great place to offer advice and solutions to the issues they are facing. Offer to go to a few presentations with them. Remember: The success of the down-line is what creates your prosperity.
Stay enthused, but do not forget to let prospects talk about themselves; they will enjoy the conversation a lot more. Listen to the prospect’s words. Use the information to gauge whether he is a potential business person, or if pitching him will risk losing him as a customer.
Yvonne Buchanan is a 20-year veteran of public relations, marketing and advertising. She teaches public relations courses online for career changers, freelancers and students through The PR Academy www.learnpr.com and is co-founder of Real-World PR www.realworldpr.com , a public relations information provider for small businesses. Real-World PR offers public relations toolkits (manual/CD combinations) that allow small business owners to create and maintain their own public relations programs.