The Law of Reciprocation in Business and Network Marketing

Several years ago, one of my mentors taught me a valuable business lesson.  He taught me the importance of offering something for free, rather than trying to sell something. He taught me that if you can offer something of value for free, people will eventually buy what you have.

This rule/law applies to any business, whether online or offline, network marketing, or even a traditional business.

He called it the Law of Reciprocation.

I learned this lesson from Mike Dillard in his book Magnetic Sponsoring.

Most network marketers and business owners really mess this up.

They expect their prospects to BUY something for them BEFORE they’ve done anything to help the prospect.  They expect people to become a customer or join as a distributor, just because they showed them the plan.

In other words, their focus is on themselves, not on their prospects.

Doing what most business owners do is a recipe for disaster.

Instead, you need to do what successful network marketers and business owners do and offer something for free first.

It could be a:

  • Newsletter
  • Boot Camp
  • Free CD
  • Free Report
  • Free Video Training
  • Free Coaching Session
  • Free Webinar
  • Free Sample
  • Or Anything Else

There are several reasons you want to give away something for free, rather than leading with your business or products.

# 1 No One Else Is Doing It – This might just be the best reason.  Giving away something for free allows you stand out in the marketplace and differentiate yourself from everyone else.

# 2 The Law of Reciprocation – People naturally like to reciprocate.  When you do something for someone, they want to do something back for you.

# 3 Build a List – This is probably the second best reason.  When you give something away, you get the other person’s contact information, so you can build your list.  Generating leads is more important than trying to make sales.

# 4 People Love Free Stuff – Finally, people LOVE free stuff.  I do.  You do.  Even your mother does.  Yes, you might attract some freebie seekers, but that’s okay.  They will weed themselves out.

If this concept makes SENSE to you, here is what I suggest you do RIGHT NOW.

First and foremost, you need to identify WHO you want to market to.  You need to identify your target market and learn everything you can about them.

Next, you want to find out WHAT type of things people in your target market value and would like for free.

Once you do that you need to decide what you are going to give away for free.  Brainstorm a few ideas and show it to a few people in your target market and get their input.

Next, you need to ADVERTISE your free item, so you can get leads and build your list.  As you do this, you are using a multi-step selling process to convert some of these leads into your customers.  SImply put, your leads will receive your follow-up messages about your products and services.

You’re selling on the back end, not the front end.

As you go, you might need to tweak or modify your free offer or your follow-up process. Once you get a good conversion rate, you can roll out your MAJOR advertising campaign.

That’s it folks.

That is the Law of Reciprication in MLM or any other business.

Focus on giving first.  Provide value.  Offer solutions.  Help others.  Do that and your leads/prospects will reciprocate and take care of you.

Give.  And then you will get.

What do you think?  Leave a comment below to share your thoughts.  I look forward to hearing from you.

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5 thoughts on “The Law of Reciprocation in Business and Network Marketing

  1. Andrew Braydon

    The general law of reciprocation clearly states that ‘You do well and you get good return’. These are golden words not only in business but in life. If you keep on following what your competitors are doing, you are doing no good to yourself, to your business and not even to your customers.

    Having a differentiating factor and distinctive way of doing business is significant for appealing your target market.

    People love free perks and you offer them value not for them but for yourself.

    Reply
    1. chuckholmes Post author

      I just believe that if you treat people right and be honest with them, good things will happen to you. I’d rather treat someone right and lose a sale, then lie and tell them what they want to hear just so they join. What goes around comes around.

      Reply
  2. Greg Boudonck

    I have heard both pros and cons about giving away free items. Your article helps give a better understanding how and why it works. Those that have had bad experiences in free give-a-ways are probably not following some of the simple rules you have put here. The fact is: by doing this, you pull on people’s morals. They feel an obligation to purchase from such a nice person who gave it for free. Great post.

    Reply
  3. Faye

    I love this. Be generous with your time and knowledge, and you have taken the first big step in establishing a relationship with your potential customer. The fact that you took the initiative will go a long way in making sure that the relationship is a positive one. I like your statement that when you do something nice for others, it makes them want to do something for you. The great thing is, this isn\’t just true in business.

    Reply
  4. Pat

    This is really interesting.

    “Doing what other business owners do is a recipe for disaster”

    I think that this is pure gold. Thank you!

    Reply

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