Today, I’d like to educate you about the concept known as stacking MLM distributors, sometimes referred to as strategic placement in MLM. Some top producers, and even some network marketing companies, use this tactic to create rapid momentum and excitement in the business. In essence, it helps build a huge MLM Power Leg.
What Do These Terms Mean?
The first thing I should do is define each of these three terms so you have a better understanding.
Stacking MLM Distributors is nothing more than placing someone you sponsor under someone else you sponsored and then placing people under that new person. You keep repeating this process over and over building the leg straight down.
Strategic Placement is where you place someone you personally enrolled STRATEGICALLY in your organization, rather than keeping them on your level 1. For example, you place Joe under Tina to help her reach her next rank advancement.
A MLM Power Leg is simply a HUGE leg, similar to a runaway leg in a binary compensation plan. There is very little width anywhere in the leg. Instead, it is built straight down, and might have thousands, even tens of thousands of people in it.
Please Keep This in Mind
Before we get started with today’s training, please keep in mind that the advice in this article is not for the average distributor. The average distributor only signs up 2.2 people in their career, so they would not be moving people around anyway. Instead, this information is really for the MLM Leader or aspiring leader who has the ability to consistently recruit new reps every month.
Stacking MLM Distributors: Pros & Cons
Every network marketing company is different. Not all MLM Companies let you move people that you personally sponsor. Most companies frown upon stacking MLM Distributors.
If your company allows you to do this, here are some pros and cons you should consider.
Pros
- Creates excitement in your team
- Helps your team members make more money
- Gives people something to lose
Cons
- Creates a welfare mentality where team members expect you to place people on their team
- Makes your bonus check smaller
Strategic Placement in MLM: Pros & Cons
Assuming your MLM Company lets you move people that you personally enroll, I think this can be a smart strategy. I like the idea of placing people strategically in my team to create the biggest, positive impact possible. Here are some of the potential pros and cons of doing this.
Pros
- Rewards your producers
- Help people make more money
- Maximize the compensation plan and help yourself rank advance quicker
Cons
- Could create a welfare mentality in your team
- Can create “turmoil in the ranks” when you give some team members a person, but not others
- Could make your commission check decrease
Building a MLM Power Leg
Here’s what you need to know upfront. No matter what type of compensation plan your company uses, you want to build power legs.
Most top earners make 90% or more of their income from just 1 to 3 power legs, even if they have personally sponsored hundreds of people.
That being said, I believe your MLM Power Leg should grow naturally, as a result of duplication, not by you stacking people. You should work in depth with the newest most excited distributor at the deepest level in your organization and build your business from the bottom up. Light a fire in the basement and watch the heat rise.
There are no CONS of building a MLM Power Leg. It should be everyone’s primary objective.
I watched a great video on YouTube by Nathan Ricks, a million dollar earner in Nu Skin The name of the video is “Driving Lines.” He talks about one of his power legs.
He said that one of his power legs has consistently paid him more than $20,000 per month, for more than 20-years. If you do the math, that’s almost $5 million from one power leg. That just shows you how powerful a good MLM Power Leg can be.
My Experience & Advice
I am going to share my personal experience and advice with you. This is what I have found from “moving” people around strategically, or stacking people, in my team during the past two years.
Placing someone you enroll under another person on your team will not MOTIVATE the person you put them under to do things they are not currently doing in the business. Sure, they will appreciate the extra money. Sure, they will keep reordering as long as they get a check. But it will NOT motivate them to get off their ass and go build the business. The only exception I have found to this is when you place someone you sponsor under one of your leaders: the people actively building a business. Not only will these folks be grateful for your help, but placing people under them is much smarter then helping out your non-producers.
In a nutshell, reward your producers and workers by putting people on their team, not the slackers.
Suggested Tips
Study your company’s distributor agreement. See what is allowed and what is not allowed. Studied your company’s compensation plan and get a solid understanding of how you get paid and what the qualifications are to rank advance.
In addition, consult with your successful upline mentor who makes the income you want to make and ask them their thoughts about strategic placement and stacking distributors. That is what I would do.
Final Thoughts
There you have it folks. These are my insights on:
- Stacking MLM Distributors
- Strategic Placement in MLM
- MLM Power Legs
Ultimately, it’s your business. You can do anything you want to do, as long as your company allows it. If nothing else, I hope you will educate yourself on these topics first, and seek counsel from someone successful in your upline to see what they recommend. That is where you will get your best advice.
What are your thoughts on these topics? Do you believe in stacking MLM Distributors? How did you build your MLM Power Leg? Do you strategically place people in your MLM Team? Leave a comment below to let me know what you think.
Sincerely,
Chuck Holmes
Network Marketing Professional (21+ years)
Top Recruiter & Top Rep
mrchuckholmes@gmail.com
I agree Jessica. This is a new concept to me. However I have just joined a group that is promoting building a power leg while at the same time the company only pays on the weaker leg. That means all of those people will earn nothing for the people above them. It seems to me that in this case a person would be most profitable if the legs were closest to each other in size. This would also build confidence in all involved. Spillover is great and it is being neutered by building a power leg when the company does not pay you for that leg.
If you are a good recruiter, having a power leg is awesome. If you stink, it’s bad. People complain about not getting paid on the power leg, yet in 99% of the time, they never put any of those people IN the business. Why should they get paid on them? The people who struggle in a unilevel compensation plan will also struggle in a binary. If you can’t recruit or retail, you won’t make much in ANY company or compensation plan.
Peter,
When I joined the company that I am with now it was a new concept to me as well. I can say that I like the concept. People who plan on doing nothing in the business will complain about the stacking, placement and even the power leg because they will not make money. You can’t make nothing from nothing. People must understand that they need to put forth effort to produce. Team members who are hustlers can benefit from each of these ways. I like that there are different ways that you can help those on your team who are producers.
I know my sponsor does this regularly, in order to qualify for the current company team-building promotions. I don’t think I would do it personally, because I feel it can be a very selfish business model. As you said, often only a handful of distributors will be actually earning any money in the “power leg,” due to lack of width. That probably won’t help your people stick around, and could add to the general disillusionment with MLM.
Good point!