MLM Secret – Limitations of Traditional MLM Marketing Methods

When I first got started in network marketing, I was taught by my MLM Company’s leaders to make a list of my friends and family, get more names from those people, talk to anyone close to me (known as the 3-foot rule), and hand out business cards and flyers.  The crazy thing is that I actually did it.  Once, I made it to the bottom of my list (that only took about one or two weeks), I asked my sponsor what I should do next and he said to make another list or prospect the list I already had again.  Using your warm market is a traditional MLM marketing method but it has it limitations.


The first limitation is that using warm market prospecting is untargeted.  It’s untargeted because you are talking to people that didn’t request more information about your network marketing product or service.   When it comes to marketing your business that is probably one of the biggest mistakes that you can make.  Can you find customers and business builders using this method?  Yes, you can and there are some that grow a large organization using just their warm market but that is the exception not the rule. 

One fundamental rule of marketing is to target your marketing.  The more your message relates to your prospect, the more likely you are to convert that prospect into a customer.  The problem with using your warm market as your leads is that you are trying to create interest in your network marketing product (or if you do what your MLM Company preaches, in the business opportunity) instead of them already being interested to begin with.  This traditional MLM marketing method requires a lot more time and energy to get sales. 

Another problem with using the traditional marketing methods that are taught by MLM companies is the limitation of using your warm market.   How many people do you really know?  Even if you can write a list of 100 names and you got everyone on that list to give you 20 more names (which isn’t likely to happen) you only have 2000 leads to work with.   And remember these are just names and numbers of people, they aren’t people that already have an interest in your network marketing product or service so you are going to have to try to create that interest. 

It doesn’t matter what business you are in, leads are the life blood of that business.  Without leads, your business is dead.  In order to grow your business to where you are making a good living every month, you will have to make a substantial number of MLM sales.  I can almost guarantee that you will NEVER close 100% of the time. 

Let’s say that you can convert 5% of your list into customers.  (I’m assuming that you are very good at sales when I use a number like 5% because the reality is that it would be closer to 1% when you are using untargeted prospects.) At a 5% conversion rate with your 2000 names, you will have 100 MLM sales.  Sounds pretty good doesn’t it?  But this is assuming that you actually get to talk to all 2000 people on your list, NOT likely to happen.  You would actually be lucky to talk to half of those people.  (Remember that the majority of those on your list are referrals.)  Let’s go with it anyway.  50% of 2000 = 1000 and you can convert 5% of them.  That gives you 50 MLM sales.  Still sounds good doesn’t it? 

It sounds good but the reality is that you will maybe get 3 sales from your warm market.  Assuming that you can make a list of at least 100 names.  3 MLM sales does NOT a business make and what do you do when you run out of names on your list?  Do you go selling door-to-door?  I’ve done door-to-door sales before, I can tell you that you have to have a very thick skin to make sales that way.


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Amy Howard, January 4th 2010 | Tags: , , , ,
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How to Sell Your MLM Product to the Masses

In order to be profitable with your network marketing business, you have to sell your MLM product to people.  The more you sell the more money you make.  Here is how to sell your MLM product to the masses.

The more people you get your message to the more chances you have to sell your MLM product.  The key to MLM selling is to get your message in front of as many people as possible.  And to do that you have to know how you want to deliver that message.  In order to make MLM sales, you first have to have people to talk to, that would be your target market.  The second thing that you have to have is the right message to deliver to your target market.  The more people you reach the more sales you make.  The more methods you use, the more effective you will be.  There are four main ways to deliver your message to your target market.

  • Face to Face – this is the method that is typically taught by our MLM companies.  Of course, they usually have you starting out one-on-one with your friends and family.  That isn’t a bad method to use when you are first starting out in fact because you are talking with people you know, you will be more relaxed with your presentation.  But it isn’t very effective at reaching the masses.  You can reach more people using the face to face method by going to trade shows, giving seminars and so on, however, that can get expensive.  All in all face to face isn’t a bad way to go but it can be expensive and it can be slow at making those MLM sales. 
  • Telephone – this method seems to scare off a lot of marketers.  I’m not sure why something like picking up the telephone can be so scary but it is.  I can relate because for the longest time, I didn’t want to pick up the phone.  I think it may be because in my first network marketing venture, I called so many people and heard so many “no’s” that I got turned off from using the phone.  However, the telephone is a great tool.  It’s cheap, effective, easy to use, and you don’t find too many people that don’t have one.  Win, Win, Win.
  • Internet – the Internet has the potential to reach the most people in the shortest amount of time but it is the hardest to master.  It takes technical skill to be able to build a website and then drive traffic to that site.  Not to mention that you still have to be able to convert that traffic into MLM sales.  Using the Internet can also get expensive depending on the methods that you are using.  If you have the technical skills, I recommend using the Internet.  Even if you don’t have the technical skills, you could always hire it out for someone else to do.  But here is a word of caution: You do still have to have marketing skills in order for it to be effective.  This whole thing about “if you build it they will come” just doesn’t work.  This method is primarily about copywriting.  Delivering the right message to the right audience.
  • Direct Mail – this method is flat out expensive unless you have the right mailing list and the right message.  Using this method is 90% about ad copy.  If you aren’t good at advertising copy, you had better stay away from this method. 

That’s it, you now know how to get your message to the most people.  I can’t tell you which method is right for YOU.  That is something that you will have to decide for yourself.  If you are having trouble, please feel free to give me a call or send me an email.  Until next time – I wish you great MLM Success.

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Amy Howard, November 11th 2009 | Tags: , , , , ,
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Why Most Network Marketers Fail

Statistically speaking, the majority of people that get into network marketing won’t make any money.  Let’s take a quick look at some facts about the network marketing industry that you may not be aware of:

  • The success rate in this industry is less than 2%.  It doesn’t matter if you joined one of the top MLM companies, what your up line tells you or anyone else tells you, the chances of you making your network marketing business grow using what is currently taught is less than 2%.  Bugging your friends and family, passing out fliers (CDs, DVDs, business cards, etc.), dragging people to meetings and home parties, doesn’t work for most people and it isn’t likely to change just because you are excited about your opportunity.
  • The national average proves that most network marketers will put 2.5 people into their downline before they quit.  Why do they quit?  They quit because their MLM company only teaches them to use their warm market to market to.  Most people can make a list of their friends of family and come up with 100-200 names.  So out of that list you may get 2 or 3 people to sign up.
  • Most people quit working their network marketing business in 90-120 days.  Why would you stay in a business where you aren’t making any money? The retention rate goes to zero if you have nothing more to offer than a failing system.  After all of the hard work to getting people to join your network marketing business it is really discouraging to see so many people drop out.  How you are supposed to build momentum with such a high attrition rate?

These are the facts of network marketing that the top MLM companies don’t want you do know.  Do you want to know why the top MLM companies continue to teach things like making a list of your friends and family, passing out fliers and so on? 

There are two reasons.  First, your MLM company has to provide some sort of training or people wouldn’t join in the first place.  Most of the people that join a MLM company and become a network marketer don’t have any sales experience and really don’t want to become something that looks like a pushy used car salesman.  (I apologize if you happen to be a used car salesman.  I meant no offense.)  So, MLM companies teach you to approach your friends and family and hand out fliers or DVD’s and tell you that the network marketing product sells itself.

The second reason the top MLM companies teach this way is because it works for them.  Think about it.  For every network marketing distributor that joins, they know that 2.5 more distributors will come on board.  Yes, most of them will quit but almost 20% will stay and continue to purchase the network marketing product.  Besides, it’s not their money they are spending to grow your business.

Don’t get me wrong.  Your MLM company isn’t out to hurt you.  They are out to make money.  If they told everyone that you would have to learn how to market and sell your network marketing product, most people wouldn’t sign up.  So, they teach methods that are very easy and simple for everyone to use and understand.  And yes, there are some people that can make money using these methods.  In fact, I’m pretty sure that they are part of the 2-5% that do succeed in network marketing and make it to the top of their MLM company.

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Amy Howard, October 16th 2009 | Tags: , , , ,
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