Today, I want to educate you about the law of averages in MLM. Contrary to what anyone else might tell you, this business is a NUMBERS GAME, initially. Once you sponsor someone it does become a people business, but you have to work through a large pool of people to find quality people to join your team and work with. Anyone who tells you otherwise is lying to you!
Even if you are an excellent recruiter, MOST people will tell you NO.
Like any other selling profession, there is a law of averages in our industry. In other words, if you work through a certain number of people you should expect a certain result. It might vary slightly from person to person, when you factor in things such as skill-set, mind-set, timing, and quality of the prospects, but I’ve found that generally speaking, the numbers are the same for most people.
Here are some averages I have experienced during my own network marketing career. Everyone’s averages will be a little bit different, but this seems to be about the norm for most successful distributors I have talked with personally. I like to be a little bit conservative, so don’t be surprised if your own numbers are a little bit better than this.
- About one in five people you prospect will agree to see a complete presentation
- About one in every five people who see a complete presentation will sign up as a distributor
- About one in every five people you sign up as a distributor will do ANYTHING at all do build their business; the other four will do NOTHING and quit
- About one in every five distributors who do anything at all will be a rock star
- You need about five rock stars in most companies to make a solid six figure income
Assuming these numbers are true, and I believe they are, here is what you could expect if you want to build a large and successful network marketing business.
- Talk to 3,125 people
- To show 625 presentations
- To sponsor 125 people
- To get 25 who do anything at all with the business
- To get your 5 superstars who are responsible for 90% or more of your income
Putting It in Perspective
This might sound impossible to do, but it’s not, especially if you break it down into bite-sized chunks. The only thing that really matters is the number of people you talk to each day.
For instance, if you talk to just two people a day, you could work through these averages in a little over four years. If you talk to five people a day you could work through these averages in just shy of two years. If you talk to ten people a day, you could work through these averages in about ten months. How awesome is that?
The only question you have to ask yourself is “how many conversations with prospects will I have each day?” Once you pick a number, you need to have the discipline to actually do it.
It’s also important to note that most top earners in our industry have sponsored somewhere around 100 to 200 people personally, yet make most of their income from the efforts of just two to five of those people.
Why People Don’t Join Your Team
There are a variety of reasons why people don’t join your team. First off, not everyone is cut out to be an entrepreneur. In fact, most people aren’t. Most people have no desire to start their own business and be their own boss. In addition, not everyone is open minded to different ways of making money. Most people have been taught to get a job from the time they could walk. So don’t be shocked when people think what you do is crazy.
Other people simply aren’t a good fit for your company or network marketing. It really has nothing to do with you. Each person you talk to is different. Accept it. Embrace it. Look for people who are looking.
Don’t take the No’s you get personally. Just work through the numbers and let the law of averages work itself out.
How to Improve Your Averages
There are really only two ways to improve your averages as I see it. The first thing you can do is improve your skills. Become a student of your business and make a decision to become a network marketing professional. Learn everything you can about the industry so you can offer value. Remember that people don’t join businesses, they join people.
The second thing you can do is talk to better qualified prospects. Identify a specific target market and focus most of your marketing and recruiting efforts on people in that target market.
There you have it folks. These are my thoughts on the law of averages in network marketing. When you work the numbers, everything else falls into place. You can’t control who gets in and who doesn’t get in and you can’t control who gets in and does the work and who doesn’t, but you can work through the numbers and let nature take its course.
I would love to hear what you think about the law of averages in MLM. Do you think the numbers I shared are realistic and accurate, or do you think I am way off? Leave a comment below to let me know what you think. I look forward to hearing from you. Have a great day.