I should start out by telling you this is a very “debated” topic in our industry with various opinions. Attitudes about this topic vary greatly based upon the company’s compensation plan and how long the distributor has been in the industry.
I should also state that your company’s compensation plan should ultimately dictate where you place your distributors in your team. Compensation plans vary widely from company-to-company, so make sure you evaluate your own company’s compensation plan to decide what is the best option for you.
The Traditional Way of Thinking
Generally speaking, most successful leaders in our industry will tell you to put everyone you personally sponsor on your first level. They will tell you to go wide, and go wide fast. Sponsor as many people as you personally can. Everyone you personally sponsor goes directly under you.
You recruited them, so you keep them. You never give someone you personally sponsored to someone else.
This attitude is most common in the unilevel and breakaway compensation plans. It’s also quite common with distributors who have been in the industry since before 1990.
In a unilevel or breakaway compensation plan, it really makes no sense to strategically place people under other people. You’ll end up missing out on lots of money if you do this.
Enter the Binary and Matrix Compensation Plans
In a matrix or binary compensation plan, you HAVE to place people you sponsor under others, because of the limited positions, so strategic placement is really a non-issue.
That being said, you’re still going to need to recruit A LOT of people to succeed in these companies, just like you would with a unilevel or breakaway compensation plan.
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My Experience with Strategic Placement of Distributors
Over the past four years, I’ve personally sponsored over 400 people into different businesses. I’ve tried many different strategies and things to motivate my team and get people to perform at a high level.
I have strategically placed people I sponsored under other people, and in some cases even gave away sponsorship, to help out my team members. I figured that placing someone on someone else’s team would motivate them and entice them to get to work.
Not ONCE has this ever worked in my favor. Even though I’ve done this about 300 times, it has NEVER helped me in the long run.
I’ve had some people get a “stud” placed on their team, do nothing themselves, and just sit back and collect a check. I’ve helped other people build up a check of over $1,000 per month, yet they still quit the business.
I’ve come to the conclusion that strategically placing people under other people on your network marketing team is similar to the government’s welfare program. It sounds good in theory. After all, who doesn’t want to help someone in need out?
The problem is, welfare doesn’t solve any problems in the long run. If anything it gets people DEPENDENT on the government. It doesn’t teach them how to become independent and provide for their own family.
It also takes away the incentive to WANT to go out and produce on your own. After all, if you’re getting something free, month after month, why would you want to go out and work for it?
Our job as leaders is to teach people how to fish, rather than give them a fish. We want to teach them to be independent of us, not dependent on us.
A Much Better Strategy: Tap-Rooting
There is a much better option to strategic placement. It’s called tap-rooting. I learned about this concept from a company called ACN, even though I have never been affiliated with that company.
Rather than “give” your team members people you sign up, it makes more sense to help your new people sponsor people in their warm market.
Work closely with them in their sphere of influence and build depth. Do some home meetings and launch parties with them. Help them make a name’s list and contact their first few prospects.
Once they sponsor one or two people, shift your efforts and start working with those new people. This will lock in the people you sponsor into the business by giving them something to lose. I’ve found that fear of loss is the best motivator.
Keep repeating this process over and over in depth until you find someone as serious as you are. You might have to drive that leg 10, 20 even 30 levels deep to find your superstar, but it is worth it.
This is a MUCH better option than just giving people you personally sponsored to other people.
Your Two Options
Your two options in this industry (that I know of) are to go wide or go deep. Personally, I think you should do BOTH those things. I believe that building depth is a byproduct of building width.
If you are a good recruiter, building width is the way to go. Keep recruiting until you find three to five studs who go out and do what you do. As a result, you will have plenty of depth in your organization, at least under those few leaders.
Your other option is tap-rooting. This method is very time intensive, yet extremely effective. With this strategy you sponsor a few people and then immediately go to work for them, helping them build their teams. You keep repeating this process over and over in depth.
What I suggest you do is get good at recruiting and WORK WITH THE WILLING. Instead of trying to make someone successful in the business, work with the people who are hungry, coachable and willing to work. Taproot under those people.
What Most Top Earners Have Done
I know many top earners in this industry. Every top earner I personally know has personally personally recruited at least 100 to 500 people, and they earn 80 to 90 percent of their income from just two to five of these people. To me, that speaks volumes. While there might be some exceptions to this rule, I haven’t found any.
There you have it folks. These are my views on strategic placement of distributors in your network marketing team, based upon my own experience.
What are your thoughts about the strategic placement of distributors in your network marketing team? How well has it worked for you in the past?
Please leave a comment below to let me know what you think. I look forward to hearing from you.
Disclaimer: Study your compensation plan. Do your due diligence. Trust your instincts. Consult with your successful upline before doing this. Individual results will vary.