Retailing vs. Recruiting vs. Team Building in Network Marketing

Today, I want to share my personal insights about retailing vs. recruiting vs. team building in your network marketing business.  You’d think this would be common knowledge in our industry, but for some reason it’s not.  I hope to fix that problem today!

Step One: Retailing

First off, retailing should be your number one objective when you are first getting started. When you first join a company, before you try to sponsor anyone, you should go out and find 10-20 retail customers as quickly as possible.  I’m not talking about people who make a one time purchase either.  I’m talking about finding retail customers who sign up for auto-ship and order every month!

You might have to find 40 or so customers to find 10-20 loyal, repeat customers.  Whatever you do, keep finding customers UNTIL you have 10-20 good customers.  You need to do this for two reasons.

First off, it helps you make retail profits in your business, so you make enough to get your products for free each month, cover your business expenses and even have money left over. With most network marketing companies 10-20 good retail customers is worth at least $200 per month to you, if not more than that.

The second reason you want retail customers is because you haven’t earned the right to recruit people into a “money making opportunity” if you aren’t making money yet yourself (my opinion).  I know some of you will disagree with that, but that’s how I feel.  Assuming you’ve found your 10-20 loyal customers you now have a profitable business, AND you can teach others do the same thing.

The third and final reason you want retail customers is because you want to lead by example in your business.  You don’t have the right to tell your team to go out and get customers if you don’t have any yourself.  Let your actions match your words.  Lead from the front and make sure you are doing what you want your group to do.

Assuming you are building your business part-time, you should be able to find 10-20 loyal, repeat retail customers in 90 days or less.  That’s very conservative and very doable. Once you’ve done that you can move to the next step.

Step Two: Personal Recruiting

Step two is recruiting, aka personal recruiting.  This is when you offer the business opportunity to others. Your primary objective with personal recruiting is to find 3-5 SERIOUS people.  In order to do that, you’ll probably need to sponsor 60 to 100 people, maybe even more than that.

From personal experience, I’ve found that only about one in twenty people is serious.  Using this one in twenty ratio, you would need to personally sponsor 60 to 100 people to find your three to five builders.  If you sponsor just one person a week, you could finish your personal sponsoring within one to two years.  Not bad!

Most of the people you recruit into the business will simply be a product user, even if they had intentions to build a business when they joined.  Most people simply do not have the work ethic, vision, or commitment to build a successful business.  It’s just reality.  I’m sure you have already figured that out by now.

Everyone’s number is different.  Some people will find their three to five serious people by sponsoring as few as 20 people.  Some distributors will have to sponsor much more than that. You can improve your success by talking to pre-qualified prospects and working smart.  Once you have your three to five serious people, you can move to step three.

Step Three: Team Building

This is where the business gets fun.  This is where you shift your efforts and spend MOST of your time working with your three to five serious people.  Your job is to transfer your knowledge to them as quickly as possible and to help them find their 10-20 customers and their three to five serious people.

Just to clarify, while you are helping your three to five serious people, you are still personally recruiting and retailing and working with some of your less serious people.  However, you’re probably only spending about 30% of your working hours doing that and about 70% of your working hours on team building.

You want to work with each serious person (leader) until their business is established and they don’t need you anymore.  At that point, you can start another leg to work with or simply keep working in depth!

Final Thoughts

This really is the key to success in our industry.  You want to work smart and know what you are working toward.  You want to start out by finding 10-20 good customers.  Once you do that you want to personally sponsor about 60 to 100 people (or more) UNTIL you find your three to five serious people.  At that point you want to focus on team building by working in depth.  By following the three steps mentioned above you should be well on your way.

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

Is Network Marketing Really a Relationship Business?

Is network marketing really a relationship business?  This is a question I have asked myself what seems like a million times now.  I want to take a few minutes in this post and share my own thoughts on the subject.

My immediate answer to the question is yes and no.  What I really believe is that our industry is a marketing and promotion business UNTIL you sponsor someone.  After that it becomes a relationship business.

What I’ve found from personal experience in this industry is that there are two types of people who do really well in our industry.  The first type of person is the person who already has tons of strong relationships.  This is someone that I call a “connector” or a “person of influence.” They are liked, trusted and respected by the people in their sphere of influence.  When they talk, people listen.  They have credibility.

Let me take a moment and put this in perspective.  Let’s assume a doctor joins a network marketing company as a distributor.  She invites over a bunch of friends and family members to her launch party about making some extra money, getting healthy, and starting their own business.

What do you think would happen when she did this?  People would show up!  People would come to her party because they trust, respect and like the doctor, and think highly of her.  They wouldn’t nit pick her or give her a hard time.  Simply put, she has credibility.  This credibility and network allow her to get off to a fast start and build it big.

On the other hand, let’s suppose a person is broke and unemployed.  They join the same network marketing company and decide to host their own launch party.  They invite over a bunch of friends and family to learn about starting a business, getting healthy, and making some extra money.

What do you think would happen?  Most people would NOT show up!  Why?  Because she doesn’t have the same level of credibility as the doctor did.  People don’t “respect” her when it comes to business or making money.

Once again, people who have ALREADY built a large network of close relationships and are trusted, respected, and liked, have a huge advantage over someone who doesn’t have that going for them.  Does that make sense?

And think about it this way for a minute.  If someone you really liked, admired and trusted invited you to take a look at a way to make some extra money would YOU listen?  What if your broke cousin, Will, who has been in ten of those ‘things’ invited you to do the same thing? Would you listen to him, or brush him off?  This proves the importance of credibility.

The second type of person who does really good in this business model is someone with great sales, marketing and promotional skills.  The person who knows how to generate leads, prospects strangers, sell, close people, etc. can build up a large network pretty quickly. They have a huge advantage over someone else who does not have these skills and personality traits.

No, network marketing is not like traditional selling where you pressure or convince people to buy or join. But you do have to find creative ways to prospect people, find leads, show the plan, and sign them up.  If you are overly shy, lack confidence, or don’t feel comfortable doing this, it will be difficult for you to succeed.

Yes, you can learn and develop these skills, but for most people that will take at least a few years to do, especially if they’ve never done it before!  If you already have these skills, you can get off to a quick start in your network marketing business and potentially build it big.

Now, when it comes to building a sustainable, long-term network marketing business, I believe that’s where relationships are vital.  These relationships are the glue that keeps the organization rock solid and together.

Look at any successful distributor in our industry who has built and maintained a large group for 20 or more years and you will see a network with tons of rock solid relationships.  

What’s the moral of the story?  First off, look for people with credibility, influence and a large sphere of influence that you can recruit onto your team.  Second, look for people with good sales and marketing skills to recruit onto your team.  Both types of people are great prospects.

Finally, focus on building relationships with the key people on your team.  Show them that you are a genuine person and that you care about them.  It will make a huge difference.  After all, it’s hard to quit on a friend!

What are your thoughts about relationships in network marketing?  Leave a comment below to let me know what you think.  I look forward to hearing from you.

Reverse Prospecting in Your MLM Business

I just heard the coined phrase “reverse prospecting” for the first time yesterday (on a YouTube video).  Although I had never heard it called that before, I’ve been using this concept in my network marketing business for several years now, with much success.

If I had to put it in my own words, I would define reverse prospecting as getting prospects to seek you out, rather than you chasing, bugging or annoying people to buy what you are offering.  Some people might even call it attraction marketing.  In other words, it’s getting people who are interested in starting a business of their own to contact you first.  Or, getting people interested in buying your products or services to contact you first.  Simply put, you become the hunted, rather than the hunter.

Most people in our industry do the complete opposite.  They make a list of everyone they know and “work their list as hard as they can.”  They call their warm market, schedule meetings and say whatever they can to get their family and friends to sign up.

Although I am not opposed to working your warm market (it works well for some people), I don’t think it’s the ONLY way or even the BEST way to build your network marketing business. Why?  Because most people in your warm market are not a qualified prospect.  The only exception would be if you are someone with a large sphere of influence and a lot of CREDIBILITY. If you have that going for you, by all means talk to your warm market.

For everyone else, the concept of REVERSE PROSPECTING might just be your best option.  This is when you do advertising, marketing and other lead generating strategies to get people to call you!

There are tons of ways to make this happen, but I’ll take a moment and tell you what I do.  I’m not telling you this to brag, to tell you it’s the best way, or to tell you it’s the only way to do reverse prospecting, but it works like hotcakes for me.

I like to write.  I know, that might sound crazy to some of you.  I know it’s one of my talents and something I enjoy immensely.  So, I started my own blog (this one and another one).  Before I started my blog I chose my niche carefully (other network marketers) and made it my quest to create the best MLM Blog online (yes, I know that is subjective).  I wanted to create a blog where people in my target market (best prospects) would visit.

I spend about an hour or two a day on my blog creating new blog posts, podcasts, videos and other content.  Once I’ve done that I share my content via social media and email and even promote it with paid advertising.

This CONTENT is my “sales force.”  It gets posted in the internet world and people who are looking for that specific information find it.  My content pre-sells my expertise and some of the people who find my content decide to call me or contact me to learn more about what I do.

Sometimes they want to join my business opportunity or become a customer.  In other cases, they want to hire me as a business coach, writer, or to do some marketing for them.  In either case, I make money!

When they call me they are typically pre-sold on ME.  They’ve already done their research and due diligence.  They just want to put a voice to my face and make sure I am a real human being. All I have to do is answer their questions and point them in the right direction.

To be honest with you, most of these conversations are WONDERFUL.  I’m not selling anything. Once again, I just focus on answering their questions and let them decide what is best for them. Some buy, some don’t!

What I like best about my reverse prospecting approaching is that it is fun and stress free.  I can have a normal conversation with a friend, family member or stranger and not think about prospecting them into my business!  I’ve done it the other way (where I hunted down people at the mall and chased the people I know) and I can assure you that I will never revert back to traditional prospecting.

You see, I’m a people person, but I hate selling.  I hate chasing people, pressuring people and convincing people to buy something they don’t really want.  But, I’m good at listening, asking questions and offering advice. That’s why I do so well with reverse prospecting, because the people who call me WANT what I am offering.

What I encourage you to do is come up with a lead generation strategy where you can use reverse prospecting in your own MLM Business. Pick a marketing strategy that will get your phone ringing with pre-sold prospects.  By all means, you can still do face-to-face, traditional prospecting, but why not combine it with reverse prospecting?

What do you think about reverse prospecting?  Do you use it in your business?  Any tips or suggestions?  Leave a comment below to me know what you think.  I look forward to hearing from you.

Three of the Best MLM Tips Ever

Today, I want to share what I consider to be three of the best MLM Tips ever!  These are three simple things I’ve learned from books, via mentors, and through trial and error.  Understanding them and applying them in your network marketing business will have a profound impact on your commission check!  They are listed in no particular order.  Enjoy.

# 1 Think Long Term

We live in a society where people want it and they want it now.  Patience is at an all time low! People expect instant gratification.  Not only do they want their food fast, but they want it supersized.

Businesses (of any kind) are not designed to provide an immediate income.  Most traditional businesses take two to five years, if not longer, just to make a profit.  And many businesses never even survive that long!

The truth is you’re not going to build a large and successful network marketing business in one or two years, let alone 30 to 90 days.  Good things take time.  I think it’s best to think of your MLM Business as a long-term (at least five to ten years) part-time project.  Work your business every day for an hour or so for five or ten years and you can build up something substantial. But it won’t happen overnight.

If you are in dire need of money today, get a job, don’t start a business!

# 2 Be Consistent

This is probably the # 1 thing that people struggle with in our industry.  I’d bet that 98 out of 100 people (if not more) do NOT work their business consistently.  You can’t work your business one day a week and expect much to happen.  I would much rather have someone work their business every day for 45 minutes, than to work their business one day a month for eight hours.

Anything you want to achieve success in needs to be done consistently.  A good marriage is built by doing the little things every day.  Acquiring wealth requires the daily disicipline to save and invest money on a consistent basis.  Losing weight is done by consistently eating right and exercising on a regular basis.

My goal for you is to have the discipline to do something to build your business every day. Show up every day, just like you do in your job.  People go to work when they don’t feel like it because they need to make money to eat and pay their bills.  Think of your network marketing business the same way.  Otherwise, you are only fooling yourself.

# 3 Learn How to Get People to Contact You

This is a tip that took me a long time to learn!  It took me more than ten years to figure it out. Most people take the wrong approach in their network marketing business.  They bug, annoy and chase people! They think of everyone as a prospect for their business.

I can’t speak for you, but I would much rather have 1-2 qualified prospects contact me each day, than for me to personally contact 10 people a day!  When people contact you first, they prove they are interested in learning more.  You don’t have to convince them or chase them.  In most cases they are already pre-sold.  All you have to do is answer their questions and help them get started.

In order to make this happen, you’re going to need to learn advertising, marketing and lead generation!  For example, I build my business 100% online by having people call me first!  I only take inbound calls.  I don’t call any prospect!  People visit my blog, like what they read, and then reach out to me to learn what I do.  That is my business building strategy in a nutshell.

I’m not saying you have to blog like I do, but you should come up with a lead generation strategy where you can get people to call you first. Here are some different ways to build your business.

Final Thoughts

In summary, these are three of my best MLM Tips ever.  Learning and applying these simple concepts in your business can have a profound impact on your bottom line.

What do you think?  What are some of your best MLM Tips?  Leave a comment below to let me know what you think.  I look forward to hearing from you.  Have a great day.

Chuck’s MLM Weekly Wisdom # 42 – June 24, 2015

Chuck’s MLM Weekly Wisdom # 42 – June 24, 2015

Dear Network Marketer:

I hope you are happy, healthy and well.  Welcome to this week’s edition of Chuck’s MLM Weekly Wisdom.  Enjoy the training.

# 1 Tip of the Week

People call me all the time and ask me how to be successful in our industry.  Most of these folks who call me are currently in a company, but are thinking about switching to a different company (because they think it will be easier).  I tell all of them that the company you join isn’t going to make things easier.  Ultimately, it’s our skills, mindset, and actions that really make the difference.

If you want to be successful in our industry, it’s actually quite simple.  I’m not saying it’s easy, but it is simple.  What you need to do to be successful is (1) stick with ONE company minimum five to ten years, and (2) personally sponsor 100 to 200 people during that time. If you do that, you’ll make it to the top ranks in your company (in most cases anyway).

To most people this advice sounds overwhelming.  I like to keep things caveman simple, so this is what I tell people.  Sponsor one person a week, every week, for two to five years.  If you did that, you would personally sponsor 104 to 260 people during that two to five year time frame.

Here is a breakdown of the numbers to make things simple.

  • You want to sponsor 5 studs who go on to build a big business
  • To make that happen you need 25 people who are ACTIVELY building a business
  • To make that happen you need to sponsor 125 people personally (on average)
  • To sponsor 125 people you need to prospect 1250 people (assuming 1 in 10 join)
  • If you prospected just two people a day, you could prospect 1250 people in 625 days (about 21 months)
  • If you prospected five people a day, you could prospect 1250 people in 290 days (about 10 months)

That really is the key to success: the number of exposures you make every day.  To make it to the top in your company, make a commitment to stick with one company for minimum five to ten years.  During that time sponsor one new person a week.   Do that and you will be very happy with your results.

The time is going to go by anyway!  Why not make a commitment and be consistent?

# 2 Suggested Podcasts

Here are a few of my recent podcasts that I thought you might enjoy.

# 3 Today in History

  • June 24, 1894 – Decision to hold modern Olympics every four years
  • June 24, 1938 – 500 tons of meteorite lands near Pittsburgh, Pennsylvania
  • June 24, 1964 – FTC rules that health warnings must appear on all cigarette packages

# 4 Suggested Videos

Here are a few YouTube videos I recently watched and thought you might enjoy.

# 5 Book of the Week

This week’s book of the week is “Who Stole the American Dream?” by Burke Hedges.  I really love this book.  It’s designed for prospects and people who are new to the industry.  It talks about pyramid schemes, the downfall of the American Dream and the power of network marketing.  I like to use it with prospects who have never done the industry before.  You can read my review of it to learn more about it.

# 6 Quote of the Week

“I was once told by a top income earner that for each person I have at a company convention, I could multiply my group by 100 one year later.” Jordan Adler

My Thoughts: Get people to events.  Events are so powerful.  Many people make the decision to “build it big” while at a company event.  Attend all events yourself and promote them like crazy with your group.

# 7 Suggested Blog Posts

Here are some trending posts on my blog that I thought you might enjoy.

# 8 In the Spotlight

This week’s featured distributor is Jordan Adler.  Of all the people in the industry who have mentored me, I would consider Jordan my # 2 mentor of all time.  He’s honest, sincere, genuine, and very intelligent.  He struggled in the industry for 10 years before he sponsored his first person.  However, he went to become a seven figure earner in two different companies and he is one of the most respected trainers in the industry.  Check out his Beach Money YouTube channel and read my review of his book Beach Money.  You can also like him on Facebook.

# 9 Weekly Challenge

My challenge for you this week is to personally reach out to 100 of your friends on Facebook and ask them to take a look at your company or products.  You can do that through private message, email, or by calling them.  Keep track of your stats and see what type of responses you get.

# 10 Clean But Funny Joke

Q: What did one ocean say to the other ocean?

A: Nothing.  They just waved.

Final Thoughts

I hope you have a great week.  Thanks for reading this week’s edition of Chuck’s MLM Weekly Wisdom.  If you have questions or need help with anything feel free to give me a call or send me an email.  Thanks.