Today, I want to share my thoughts on the MLM Success Ratio. This is a formula for success I learned many years ago.
First and foremost, selling is a VERY predictable profession. All salespeople have a success ratio, whether they realize it or not. The top producers KNOW their success ratio and they do EVERYTHING in their willpower to improve it. On the other hand, the poor performers seldom track their stats or know their ratio.
Your MLM Success Ratio
Here are a few examples of the MLM Success Ratio in action.
Example # 1
Joe contacts 100 people. Of those 100 contacts, he has conversations with 50 people. From the 50 people, 20 people watch a presentation. Of the 20 people who watch a presentation, two join his team. Based off this formula, Joe knows that for every 50 people he contacts, he will sign up one new person in his business. This makes his business predictable. He knows that if he contacts 500 people, he will sign up 10 people into his business.
Example # 2
Mary is brand new to the business. She has limited skills. She contacts 100 people. From that she talks with 60 people. Out of those 60 people, 15 agree to watch a presentation. Of the 15 who watch a presentation, 1 joins her team. Based off this formula, Mary knows that for every 100 people she contacts, she will sign up one new person in the business. This makes her business PREDICTABLE.
Example # 3
Tony is a network marketing professional. He has fine tuned his skills during the past 10-years in the industry. Tony knows that if he contacts 100 people, he will have conversations with 80 people. From those 80 people, 40 will watch a presentation. Of the 40 who watch a presentation, 10 will sign up in the business. Based off this formula, Tony knows that he will sign up 1 in every 10 people he contacts. This makes his business predictable.
Calculating Your MLM Success Ratio
For the next 90-days, keep track of the following stats.
_______ of prospects contacted
_______ of conversations
_______ of presentations given
_______ of new sign ups
If you do that, you will be able to determine your success ratio for your business.
Improving Your MLM Success Ratio
If you want to improve your success ratio, you need to do two things:
# 1: Work on Your Skills
First and foremost, you need to work on your skills. Skills pay the bills in our profession. Be a student of your business and fine tune your inviting, presenting, closing and follow-up skills. You will naturally improve your skills over a period of time. Plus, you can read books, attend events and work closely with your mentor to really get good at what you do. As you improve your skills, you can talk to fewer people and sign up more reps.
# 2: Approach Better Quality Prospects
The only other thing I can think of that you can do to improve your success ratio is to talk to better quality prospects. Instead of going after broke people, look for successful people. Look for people with credibility and contacts. Look for people with a good attitude and a big sphere of influence. Look for people who are very successful at what they do, regardless of their chosen profession. These are your best prospects.
Here are a few additional insights I have learned during the past 17-years that might help you improve your success ratio.
When you are just starting out in the business, it’s vital that you focus on your warm market first. With your warm market, you already have the like, know and trust factor going for you. You have credibility. Not so in the cold market. Get your practice with your warm market before going into the cold market.
Every great network marketer was a lousy network marketer at first. No one starts out good in this business. The key is to just get started and then keep getting better and better.
Even the best recruiters don’t sign up more than 1 or 2 in every 10 people they approach. You’re never going to recruit everyone you talk with, no matter how good you are. Make sure you have realistic expectations.
This business is a numbers game. Even someone with a low success ratio can out recruit a top performer IF they talk to more people.
Be a student of your profession. Learn everything you can about your company, its products, and the industry. Realize that people join people and you must become someone worth joining.
If you don’t track it, you can’t improve it. Great salespeople track their stats every single day, because the numbers never lie.
There you have it folks. These are my best tips on the MLM Success Ratio. I hope you found the information helpful. What are your thoughts about this topic? Leave a comment below and let me know what you think. I look forward to hearing from you.