I am frequently asked what I think about the Direct Sales / Network Marketing (MLM) industry and whether or not I think you can create a solid, long lasting business with this kind of business model.
The short answer to the question is, “Yes, I do.” BUT there are a number of important conditions that accompany that response. Here are the first two:
First, as I described in the video lesson “The Value Principle“, your success is not going to be automatically determined by the product you represent or the ‘big tent’ hype typically emanating from your upline. Your success is going to be determined by YOUR individual value contribution. In my experience the most successful MLMers have found a way to provide a value contribution above and beyond “the product”, the “comp plan” and “the system”.
This is a particularly good application for the information and learning you’ve received with your Entrepreneurial Strengths Survey and here on….
ThePerfectBizFinder Video Training Blog.
For instance by evaluating your MLM business opportunity relative to the individual entrepreneurial strengths identified in your survey results you’ll be better equipped to focus your attention on adding value in areas where you are most likely to succeed and can find other ways to address the remainder.
Likewise, you can apply the learning you’ve done here on the video blog and organize your MLM business to deliver the lifestyle and financial results you expect and deserve.
Next, you must realize that building a successful business of any kind takes time. If I have one criticism of many of the more popular MLM opportunities, it’s that many of them promote the opportunity as if you can make big money right away without doing much work or knowing much.
That’s a disappointing deception and the sooner you accept that the better.
You must recognize that you are building a business….a whole business…not hiring on as a sale rep or signing up for free distribution of money. It’s going to take some time.
So, assuming you’ve used ThePerfectBizFinder to identify the right MLM business for you, the REAL question to ask about growing it as quickly and effectively as possible is what activities do you need to focus your (likely limited) time and attention on in order to create the business that delivers what you want, without sacrificing life-quality.
I contacted my good friend and world renowned MLM expert Mike Dillard about this and he provided me some insights that I believe will help you.
Mike writes….
“Hi Steve,
Great to hear from you! You are ‘right on the money’ with the advice you’ve given your readers. MLM business can provide astonishing levels of success. But, as with any business, there are a few ‘rules of the game’ that make the difference between success and failure.Most people just starting out in MLM have a limited amount of time available to work the business. People have jobs and family responsibilities. While they can clearly envision the lifestyle and financial life they want to live, most people have to develop their business a little at a time until it delivers an income that exceeds their employment income.
Others are considering or have started an MLM because they are already out of work. In this case while you may have more clock-time available each day than those who are still working, this just means you need to produce results that much faster with the time you have.
Either way your principle concern is the most effective use of the time you have available to invest in your business.
Well, in reality time is NOT really the issue. It is instead the EFFECTIVE USE of time that truly matters. It is simply a matter of working smarter and more effectively with whatever time you have.
So the most important thing you need to do is prioritize our activities so that you’re only spending time on those activities which directly affect bottom line revenue production and growth.
There are a lot of activities that go into building an MLM business:
- Calling leads (prospecting)
- Interviewing leads
- Contact management
- Scheduling follow ups
- 3-way calls with upline and downline.
- Mailing information
- Making follow up calls
- Processing new orders and applications.
- New distributor training and orientation
- Writing ads
- Placing ads
- Creating capture pages
–
Now here’s where I want to flip the switch upstairs for you.Look through all of the activities above and ask yourself the following question:
“What makes me money?”
The answer?
At the end of the day, it’s only one thing:
“Processing completed customer orders and distributor applications”.
Simply put, that’s the only activity that makes you money so it’s the one activity that should dominate your business building time.
If you only had two hours per day to build a business, how much money would you be making if you spent all two hours processing new applications and taking orders?
Possibly enough to quit your job!?
This is where you say, “Ya but that’s impossible Mike…”
Actually far from it.
That’s all I do and here’s the process needed to make it happen:
Now in order to process orders consistently and at a relatively high rate each day, 3 things must take place:
- You must build a pipeline of prospects whom you consistently contact over time, not personally, but through marketing.
- You must build a relationship with those prospects, not personally, but through technology.
- You must effectively market your goods and services to those prospects.
–
Get these 3 things to happen on a regular and consistent basis and sales are made and income is produced.Now here’s the deal…
All three of these activities can, and must, be achieved on autopilot if you want your production to sky rocket.
And that’s the secret between full-time networkers who make the big bucks, and those who bust their rears all day long for years, barely turning a profit.
- Part-timers continually buy leads or place ads to generate new prospects, but rarely
put them into a long-term “pipeline.”
- Part-timers attempt to build relationships with their leads by talking to them on the
phone numerous times.
- I constantly see networkers contact a lead 3 to 5 times, spending 1 to 5 hours time trying to get a single prospect into the business.
- Part-timers spend major bucks and most of their limited time buying, and then mailing
expensive prospecting tools to their prospects.–
The lesson to be learned here is that these people are trying to build a business without leverage. They are spending too much of their time doing activities that DO NOT directly produce income.The rich networker puts together a lead generation campaign on online that automatically generates 10-20 news leads per day for him.
The rich networker leverages tools and technology like personally written autoresponders to build a relationship with his 1,000’s of prospects automatically. He knows that a relationship and trust can be built without personal phone calls.
The rich networker has an assistant or fulfillment center distribute business building tools to his prospects automatically so he’s isn’t stuck addressing envelopes every night at his kitchen table.
The rich networker only does three things that require his personal time:
- He contacts the prospects who have called or emailed him after reviewing his marketing materials.
- He processes their application or product order.
- He talks to and builds relationships with other rich networkers and proven producers, not beginners.
–
Success in the right MLM is not about how much time you have available, but how you’re spending that time.Steve, I hope this answers the question and provides your readers with the direction they need.
Sincerely
Mike
–
That’s sound advice from Mike Dillard, an 8 figure MLM veteran.
Mike has created a program that teaches you exactly how to develop a real business from you MLM opportunity. I used “Magnetic Sponsoring” and know that it works.
In fact, I not only used it to create a solid MLM business success which continues to pay me handsomely now despite the fact that I have very little ongoing personal involvement today, but I also use many of the techniques he teaches in several of my other businesses.
Mike has put together a bunch of special free stuff for you as one of my readers.
If your perfect business is an MLM, then let me encourage you to purchase “Magnetic Sponsoring” and model your business after one of the most successful experts in the industry.
You can get more information here:
Mike Dillard’s Magnetic Sponsoring
–
I’m interested in hearing your thoughts about Mike’s article.
Did it provide you any new insights?
Did it give you any ideas?
Do you see how you might be able to adjust your daily activities to generate more success more quickly?
Let me know by commenting below.
I’m standing for all that’s possible for you in life and business.
Sincerely,
Steve
