Today, I’d like to talk about the five components of a healthy MLM Business, as I see it. These are some simple and practical things EVERY serious network marketer should have in place if they want to build and maintain a successful network marketing business.
The Five Components of a Healthy MLM Business
Keep in mind, these five things are listed in no particular order.
# 1: Lead Generation
The first component of a healthy MLM Business is lead generation.
Without a steady flow of fresh leads you will NOT be in business long. Neither will your team members.
In my opinion, “lack of leads” is the number one reason so many people give up on network marketing so quickly. They either have no one to share the products or business opportunity with, or they feel that way.
Yes, you should start with your warm market first, but after that you need a few different ways to get leads. This might include live events, home parties, postcards, buying leads, paid advertising, social media, a team advertising CO-OP, etc.
You need to TEACH your team members how to get leads IF you want them to stick around. There are literally thousands of ways to get leads. Ultimately, you want 3-5 good ways that work for you and align with your personality, talents and skills.
Teach everyone to start with their warm market, but also make sure you provide training on different ways to get leads. Work with each person individually and help them find a few simple lead generation strategies they feel comfortable doing.
Getting leads is only a small step in the sales cycle. You have to determine the leads who are a good fit for your business, target them to make your sales pitch and make sure to follow up on that. You will get turned down a lot of times and the sales cycle can be a real pain. But if you hang on, you will get a hang of how it is done and as long as you are genuine in your business and the services you offer can help people, there will always be customers and clients out there who want the things that you offer.
Source: Lead MLM Software
# 2: Systems
The next component of a healthy MLM Business is your system.
A system is nothing more than a standardized, documented way of doing something.
Businesses succeed or fail because of their systems (or lack of them). The system is the solution.
In your MLM Business, you need systems for (1) lead generation, (2) launching new distributors, (3) training your team and (4) building leaders.
You want to put some SERIOUS thought into this. The average person coming into the business has ZERO clue on how to do these things. It’s your responsibility as a leader to help them learn and follow your systems.
The easiest way to put all of this in place is to have a team training manual that covers each of these systems. You could also have a team training website or video series that explains each of these things.
Develop your systems right out the gate. If your upline has systems in place already, do not reinvent the wheel. If anything, consider yourself lucky. Use their systems.
If you have to create your own systems, take your time and do it right the first time around. Write everything down and always look for simple and easy ways to tweak and improve your systems.
By systemizing your business, you will obtain a comprehensive insight of how every aspect of your business works enabling you to manage your teams more effectively, and by implementing systems, your business will continue to evolve and grow.
Source: Breslins
# 3: Training
The next component of a healthy MLM Business is your TRAINING.
Just like in the corporate world, people need initial and ongoing training.
The first and most critical training you need to set up is your getting started training. This should include simple step-by-step instructions on how to launch your new business.
Furthermore, I suggest you have some type of weekly webinar or conference call. Do it every week on the same day and time no matter what. These weekly meetings are critical.
Next, you want to do some type of monthly or quarterly training at a live event. This is in addition to your annual convention. Live events are the glue that keeps your business together.
Finally, you want to have a team Facebook group where you can share ideas, provide recognition, create a team culture and keep everyone plugged in.
Never stop educating yourself. There are constantly new ways of marketing or old ways that you haven’t tried yet. The more you learn and experiment, the more likely you are to find a formula that works perfectly for you. If you are aware of problem areas in your marketing strategy, such as poor direct selling skills, then take time working on that specific area and learning what you can. You are only as strong as your weakest link. Brush up on various marketing strategies and learn to reach a new audience every day.
Source: MLM Marketing System
# 4: Leadership Development
I learned this valuable lesson during my time in Amway.
Network marketing is ultimately a leadership business. Most reps and customers come and go like the common cold. Ultimately, you are looking for 2-5 leaders who catch the vision and build it big.
To make big money in network marketing, you only need to find 2-5 good leaders. Of course, that’s easier said than done, but it is possible.
Very few people on your team will be leaders: less than 1%. What you want is a culture that DEVELOPS LEADERS by teaching personal development, helps people improve their attitude and mindset and teaches people new skills.
Get people reading books. Get people to events. Spend time one-on-one mentoring potential leaders. Always keep your eyes and ears open for potential leaders in your team. When you identify someone with leadership potential, reach out to them, even if you did not sponsor them, and start to build a relationship with them.
Leaders you recruit into your business are a flight risk (after all they left another company to join you), but leaders you develop yourself are much more loyal and are much more likely to stick around.
# 5: Team Culture
The last component of a healthy MLM Business is your team culture. Reps may join for the money, but most people stay (or leave) because of the relationships they have with others.
You want a strong team culture that grows people, recognizes people and makes people feel appreciated. People want to belong to something greater than themselves. That is a basic human need. Your job is to create this culture, if you want a long-term, healthy MLM Business.
Having a solid team culture with strong foundations is crucial. The team culture defines the team. Team culture is everything that new member notice when they join the team. The communication structures, the processes, the way that the code is designed and written, the mission and the vision of the team, etc., are elements of the team culture.
Source: HackerNoon
Final Thoughts
There you have it folks. These are the five components of a healthy MLM Business, as I see it. What are your thoughts? Do you agree or disagree? Leave a comment below to let me know what you think. I look forward to hearing from you.
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Sincerely,
Chuck Holmes
Network Marketing Professional (21+ years)
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mrchuckholmes@gmail.com