What to Do in MLM Before You Start Sponsoring People

Today, I want to share what you should do in MLM before you start sponsoring people.

Most new distributors are taught to make a name list and contact everyone they know about their business opportunity within their first week of joining.

Most upline distributors teach this method because they know they only have a short time to maximize the new distributor’s excitement (before they quit).

As a result, they teach this process over and over again, knowing that anyone can make a list and talk to friends and family.  They know that most distributors won’t actually do it, but a few will.  Plus, they will have a name list to use if the distributor quits.

Personally, I think there is a much better way.

I don’t think ANYONE should go out and try to sponsor someone right away, ESPECIALLY if they are brand new to the industry.

Instead of sponsoring people, I think it is MUCH wiser to focus on getting ten to twenty good customers first.

There are several benefits of getting customers BEFORE you try and recruit people.

First and foremost, getting retail sales puts immediate cash flow in your business.  Show someone how to make IMMEDIATE profits and their likelihood of quitting right away go down.

Also, it’s normally much easier to convert your warm market into customers than it is to convert them into distributors.  If you were to talk to 100 friends and family about joining the business, you might sponsor three to five.  Talk to those same 100 people about the products and you could easily get 20 to 30 customers.  See the difference?

I also recommend getting customers before you start sponsoring people because you have to learn how to sell, before you can teach someone else how to sell.

The major benefit of finding customers and making sales is that it teaches you how to sell.

Once you have this knowledge, you can share it with others.

Your goal is to take a few months and build up a large customer base (about 20 good customers).  Depending on your compensation plan, this should easily give you $500 to $1000 per month in profit (individual results will vary).

Once you have a profitable, small business, you can start sharing it with others and show them how to do the same thing.

As you are getting customers and making sales, you are also learning the business.  Within 90 to 120 days, you should have a pretty good grasp for your company, your compensation plan and your product line!

All of these things will come in handy when you start building a team.

If you just start building a team of distributors from day one, it’s like the blind leading the blind.  After all, if you are clueless, how can you honestly help your team succeed?

I would personally much rather sponsor a new distributor who follows this process than someone who gets in and immediately starts trying to sponsor people.

Another key point to remember is that it takes A LONG TIME to build up a large residual check from a downline.  To earn $500 from downline commissions is much harder and more time consuming than making $500 in retail profits.  If you don’t believe me, just try it!

But, if you can teach them the approach I just talked about, there’s a good chance many of them will stay around longer and be in it for the long haul.

What are your thoughts?  What do you think about getting customers BEFORE you start building a team of distributors?  Leave a comment and let me know.

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Sincerely,

Chuck Holmes

Webmaster, OnlineMLMCommunity.com

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Email: chuck@onlinemlmcommunity.com
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4 thoughts on “What to Do in MLM Before You Start Sponsoring People

  1. Tee

    It’s kind of hard to focus on getting customers first when most of these companies are built on mainly recruiting. I’ve been with a few companies and they’ve never provided any videos to gain just customers. All of their videos and scripts were focused on recruiting. There are no tools or support. I have to actually make a customer video myself if I want to just get customers. And during home parties, you are taught from your sponsor to offer the opportunity to be a customer or distributor during the presentation. How can your sponsor use your name list if you quit as a distributor?

    Reply
    1. chuckholmes Post author

      Many upline have you give them a copy of your name list, so when you do quit (if you do) they will still have access to your contacts.

      I would argue that any company built just on recruiting isn’t very viable in the long haul.

      If the only people consuming products are distributors, be prepared to eat a big lunch.

      Customers are the lifeblood of any business.

      Any business, or MLM Company, that has less customers than distributors will potentially be in trouble with the FTC, and probably won’t be around too long.

      Just my two cents.

      Reply
    2. Greg Boudonck

      I would also add to what Chuck said here: you should have a strong advantage. If everyone else is attempting to sponsor people instead of getting customers, you somewhat have a monopoly on the customer getting base. I agree with Chuck, because if you get a base of customers, you will lose some of that financial stress that shows when we talk to people about the opportunity. You will be more relaxed, and many of your customers will want to be sponsored by you when they see how you work. Getting customers first is a win-win.

      Reply

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