The Law of Averages in MLM and Network Marketing

Today, I want to educate you about the law of averages in MLM.  Contrary to what anyone else might tell you, this business is a NUMBERS GAME initially.  Once you sponsor someone it does become a people business, but you have to work through a large pool of people to find quality people to join your team and work with.  Anyone who tells you otherwise is lying to you!

Like any other selling profession, there is a law of averages in our industry.  In other words, if you work through a certain number of people you should expect a certain result.

Here are some averages I have experienced during my own network marketing career.  Everyone’s averages will be a bit different, but this seems to be about the norm of most successful distributors I have talked with personally.  I like to be a little bit conservative, so don’t be surprised if your own numbers are a little bit better than this.

  • About one in 20 people you talk to will join your business as a distributor
  • About one in every five people you sign up as a distributor will do ANYTHING at all do build their business; the other four will do NOTHING
  • About one in every three distributors who do anything at all will be a rock solid distributor
  • About one in every three rock solid distributors will be a superstar who is responsible for a large portion of your income

Assuming these numbers are true, and I believe they are, here is what you could expect if you want to build a large and successful network marketing business.

  • Talk to 2,700 people
  • Sponsor 135 people
  • To get your 27 distributors who do anything at all
  • To get your 9 rock solid distributors
  • To get your 3 superstars who are responsible for 90% of your income

Putting It in Perspective

This might sound impossible to do, but it’s not, especially if you break it down into bite-sized chunks.  The only thing that really matters is the number of people you talk to each day.

For instance, if you talk to just two people a day, you could work through these averages in about four years.  If you talk to five people a day you could work through these averages in about one and a half years.  If you talk to ten people a day, you could work through these averages in about nine to ten months.  How awesome is that?

The only question you have to ask yourself is “how many conversations with prospects will I have each day?”  Once you pick a number, you need to have the discipline to actually do it.

It’s also important to note that most top earners in our industry have sponsored somewhere around 100 to 200 people personally, yet make most of their income from the efforts of just two or three of those people.

Why People Don’t Join Your Team

There are a variety of reasons why people don’t join your team.  First off, not everyone is cut out to be an entrepreneur.  In fact, most people aren’t.  Most people have no desire to start their own business and be their own boss.  In addition, not everyone is open minded to different ways of making money.  Most people have been taught to get a job from the time they could walk.  So don’t be shocked when people think what you do is crazy.

Other people simply aren’t a good fit for your company or network marketing.  It really has nothing to do with you.  Each person you talk to is different.   Accept it.  Embrace it.  Look for people who are looking.

Don’t take the No’s you get personally.  Just work through the numbers and let the law of averages work itself out.

How to Improve Your Averages

There are really only two ways to improve your averages as I see it.  The first thing you can do is improve your skills.  Become a student of your business and make a decision to become a network marketing professional.  Learn everything you can about the industry so you can offer value.  Remember that people don’t join businesses, they join people.

The second thing you can do is talk to better qualified prospects.  Identify a specific target market and focus most of your marketing and recruiting efforts on people in that target market.

Final Thoughts

There you have it folks.  These are my thoughts on the law of averages in network marketing.  When you work the numbers, everything else falls into place.  You can’t control who gets in and who doesn’t get in and you can’t control who gets in and does the work and who doesn’t, but you can work through the numbers and let nature take its course.

I would love to hear what you think about the law of averages in MLM.  Do you think the numbers I shared are realistic and accurate, or do you think I am way off?  Leave a comment below to let me know what you think.  I look forward to hearing from you.  Have a great day.

Managing Your Emotions in Your MLM Business

We are all emotional creatures!  Most people make emotional decisions, not logical decisions.  If people were logical, no one would be overweight, no one would be broke and no one would break the law!  Our emotions are very powerful.  They dictate what we do or don’t do.  They control how we feel.

I would define emotions as the “feelings” we have in our mind.  Some of the most common emotions include fear, happiness, anger, sadness or disappointment, and surprise.

No person is 100% logical.  No person is 100% emotional.  Most people are more emotional than logical and some people are more emotional than others.

When it comes to network marketing, managing your emotions is a very important thing to do if you ever want to be successful (and happy).  The key to success is to be constant with your emotions!

For some people, their emotions are like a rollercoaster.  They are excited one minute and depressed the next minute.  Two minutes later they are fearful and a few minutes later they are surprised.  It’s no wonder so many people don’t survive the business.

In this business you are going to have lots of different emotions.  You will get excited.  You will get frustrated.  You will be disappointed.  You will get angry.  You will be fearful.  You will be feel anticipation.   Once again, these are natural feelings that everyone experiences.

What has helped me the most to manage my emotions was detaching my emotions from other people. You see, most people’s emotions are controlled by other people.  Most people in our industry let other people determine how they feel.

Here are some examples:

  • When someone joins your team, you are excited
  • When that same person quits 12 hours later you are disappointed
  • When someone teases you for being involved in this industry you get angry
  • When someone “no shows” you for an appointment you are disappointed or angry
  • When someone makes a purchase from you, you are excited
  • When someone tells you it’s a scam you get angry
  • When people you sponsor do nothing, you get disappointed

I could go on and on here!  Can you relate?

So what’s the solution to managing your emotions in your network marketing business?  I’ll give you some advice that someone taught me several years back.  I was taught to detach my emotions from what other people say or do.  In other words, don’t let other people control how you feel!

My mentor taught me to expect NOTHING from everyone so I am never disappointed.  He taught me to expect the worst, but hope for the best.

He taught me to be constant and steady and be in control of my own state of mind!

Was this easy for me to do?  HELL NO!

It took me a while to grasp this concept and apply it in my own life.

But man has it been helpful!  I’m still an optimistic guy.  But when it comes to this industry I expect everyone to say NO, to not join, and do nothing. That way when they do something good, it is a breath of fresh air!

I encourage you to do the same thing.  I encourage you to get a grasp on your emotions.  Stop letting other people’s words and actions dictate how you feel.  Never give control over your mind to someone else!  Ever! Take charge of your own mind.

Once you learn how to do this the business becomes fun!  You don’t have major ups and downs.  You don’t let other people dictate how you feel.  You are steady and in control of your own mind.  You are in charge!

Will it be easy?  Nope.  But it will bring you more happiness and peace of mind than anything else I can think of.

What do you think?  What do you do to manage your emotions in your MLM Business?  Leave a comment below to share your thoughts.

Having Integrity in Your MLM Business

Today, I want to write about having integrity in your MLM Business.  I’m shocked that I even need to write a post about this subject, but with all the unethical and shady crap I see online, I think it will help some of the people in our industry, especially the new people.

I once heard that there is no such thing as business ethics (thanks John Maxwell).  In other words, ethics has nothing to do with business itself.  As a person, you are either ethical or you aren’t.  Ethical people are ethical in their business and unethical people are unethical in their business.  Does that make sense?

Some people have integrity.  Some don’t.  Some folks will maintain their integrity no matter what.  Others will ditch their integrity quickly to make a fast buck!

When you look around online integrity is defined as “the quality of being honest and having strong moral principles.”  If I had to put it in my own words I would define integrity as doing the right thing, being a person of your word, and never lying to others.

I should begin by telling you that no person is perfect.  I’m not.  Neither are you.  However, you don’t have to be perfect to have integrity.  Having integrity, or not, is a personal choice.

When it comes to network marketing, I do believe that most people in our industry are good people who want to do the right thing.  Yes, we also have some shady characters as well.  Every industry has some bad apples.  Some people intentionally lie, cheat and deceive others to fatten their wallet.

Others do and say dumb and questionable things because they are ignorant.  In other words, they might not even know that what they are doing or saying is wrong or unethical.  I think this is where a rock solid training program comes in handy.

I have some simple advice I can share with you to help you build your business with integrity.

# 1 Do what you say you will do – If you say you are going to do something do it.  If you say you are going to call someone at 5 pm, don’t you dare call at 5:01 p.m.  If you say you are going to build your business big, build it big.  If you promise your prospect or new team members something, follow through with it.

# 2 Make sure your actions match your words – Most people talk a big game, but when you look in their back office you will see otherwise.  My suggestion is to be reserved about what you say you are going to do.  Be so busy working and producing that you don’t have time to talk a big game.

# 3 Never lie, cheat or steal – This should be common sense. Do the right thing!

# 4 Never use hype, pressure or the hard sell – Never, ever pressure someone, beg someone or chase someone to join the business.  You don’t need any one specific person to be successful.

# 5 Try to help people rather than think about how much money you can make from them – Take your eyes off yourself, and how much money you can make from someone else, and see how you can help them!  Put yourself in your prospect’s shoes and think of things from their perspective.

# 6 Set a strong personal example for others to followLead by example.  Be a sterling example for others to follow, based upon what you do and say.

# 7 Stay true to your values and beliefs – Never jeopardize your own values or beliefs for anyone else, even a business opportunity.

# 8 Ensure you never say or do anything that would jeopardize your reputation, the company’s reputation or the industry’s reputation – Be a professional at all times.  Realize that people are watching you.  Never ever say or do anything that hurts your reputation, or the industry’s reputation.  This means never badmouthing another person or company.

# 9 Treat everyone as well as you would treat your daughter or mom – Be nice to everyone you meet, even if they are a jerk.  Have compassion and understanding when talking to others.  Don’t be too quick to judge people.

# 10 Train your team – Train everyone on your team about ethics and integrity.  I’m shocked that most companies don’t require some form of ethics training when people join their company, but since they don’t do it, it’s your job as a sponsor and upline to educate your team on what they should and shouldn’t do and say.

# 11 Never ever talk about fast or easy money – Make sure you always share the company’s earning disclaimer and give your prospect or team members realistic expectations about what they will have to do to make it big in the industry.

Final Thoughts

These are just a few things you can do to build your MLM Business with integrity.  I hope you will take this advice to heart and always do the right thing.

What are your thoughts on this subject?  Leave a comment below to let me know what you think.  I look forward to hearing from you.

One Business Tool Every Network Marketer Needs

There are a lot of different business tools you can use to build your network marketing business.  Of all the tools there are to choose from in the marketplace, there is one tool that you cannot live without.   That tool is an auto-responder.

An auto-responder is a software program that manages your leads, helps you build a list, and sends out emails for you automatically, at a frequency you pick.  It’s really a business tool that does all of your follow-up for you, automatically.

Whether you are building your network marketing business face to face or online, having an auto-responder is non-negotiable as I see it.  Here are a few reasons why you should use an auto-responder.

# 1 Build a List

The money is in the list.  That is a true statement.  No, I am not talking about making a list of everyone you know. You can do that too.  You should do that.  Your list is your prospect list.  It’s a list of people who have requested more information about what you do.  This is a list of everyone you have ever talked to about your products or business opportunity.  Think about how big your list would be if you would have kept track of everyone you ever talked to about the business (or products), and had all the information in one place?

# 2 Build a Relationship with Your List

People like to buy things from people they know, like and trust.  Quite perhaps the most important job of an auto-responder is to build relationships with your prospects.  The more emails people get from you, assuming you offer value, the more people will start to trust you, and look forward to getting your emails.  People will start to feel like they know you and will begin to like you.  This is exactly what you want to happen.

# 3 Automate the Follow Up Process with All of Your Leads

Auto-responders let you work smart.  Think about how hard it would be to manually follow up with people if you had 200 leads in your pipeline!  Your auto-responder automates this process for you so you don’t even have to think about it.  It saves you a ton of time.

# 4 Sift and Sort Through Your Prospects

Your auto-responder will automatically sift and sort through your prospects.  It will weed out the tire kickers.  Some people will unsubscribe.  Some people will buy right away.  Others will take months or years to convert into a customer or distributors.  In either case, it’s fine, because your auto-responder is doing all the work for you.  You’re just waiting for people to call you or email you when they are ready to get started.  Some people will even go and sign up on their own.

# 5 Create Multiple Streams of Income

An auto-responder lets you create multiple streams of income.  Even with an auto-responder most of your leads are not going to join the business opportunity or buy your products.  You can promote a variety of products and services with your auto-responder so you have different income streams.

Why Do You Need an Auto-Responder?

You need an auto-responder to strategically build relationships with your prospects and follow up with them on complete auto-pilot.  A good auto-responder sifts and sorts through your prospects, gets people to like, know and trust you, and helps you convert prospects into customers and distributors on complete auto-pilot.  It is my # 1 business tool.

Best Ways to Use Your Auto-Responder

The best way to use your auto-responder is to provide value.  Your goal is to educate others about what you do and about how your products or business opportunity can benefit them. You shouldn’t send out a bombardment of sales messages.  Instead, you want to send out educational emails that teach others about what you do, and how what you have to offer can help them.  Ideally, you want 50-100 emails that can be delivered to your prospects over a period of months.  I suggest sending out at least two emails per week.

Different Auto-Responder Services to Choose From

There are tons of different auto-responder services to choose from such as Mail Chimp, Get Response, iContact, Constant Contact and InfusionSoft.  Most services cost somewhere around $20 per month to get started.  Check out this link to see the only auto-responder I use and recommend myself.

Getting Started

Here are the steps to getting started with an auto-responder.

1.  Buy your auto-responder service

2.  Create your list and list settings

3.  Write your emails and set the frequency

4.  Start building your list

Final Thoughts

The bottom line is that an auto-responder is the most important tool you can use in your network marketing business.  Whether you are building your business the old school way, or doing it online, you need a way to build a list and manage it (on auto-pilot).  The only auto-responder I use and recommend myself is Aweber.  They offer the best service in the marketplace as I see it.

Disclaimer: I am an affiliate with Aweber, but I have also been a customer with them for about six years now.